French Prime Minister Michel Barnier resigned after a no-confidence vote in parliament

Paris – French Prime Minister Michel Barnier on Thursday met with Emmanuel Macron to tender his resignation after losing a no-confidence vote in parliament, as the president urgently seeks ways to curb political and financial chaos. Poised to become France's short-term prime minister, Barnier arrived at the Elysee Palace shortly after 10 a.m. local time (4 a.m. Eastern) to formally resign, with the outgoing prime minister and government constitutionally forced to step down after a defeat in parliament.

The majority of lawmakers backed a vote of no confidence on Wednesday proposed by the hard left and supported by the far right, led by Marine Le Pen.

Barnier's swift release of the record comes after a brief stint in parliament elections this summer that resulted in a hung parliamentwithout the political influence that can build the majority of the people and the far right who hold the key to the government's survival.

The reason for Barnier's dismissal was his 2025 budget plan, which included austerity measures that were unpopular with many in parliament, but he said was needed to stabilize France's finances. On Monday, he pushed through a public funding bill without a vote.

A successful motion of no confidence canceled the entire government budget, leading to a renewal of the current budget next year, unless any new government rushes to approve a new budget by Christmas – an unlikely scenario.

“France will probably not have a budget for 2025,” ING Economics said in a note, predicting that the country is “entering a new era of political instability.”

Moody's, the rating agency, warned that the fall of Barnier “deepens the political tension” and “reduces the prospects for consolidation of public finances.”

The Paris stock exchange fell at the open on Thursday before recovering to show small gains, while yields on French government bonds again came under higher pressure in credit markets.

Macron now has the unenviable task of choosing a successor. The president was to address the nation on Thursday evening, his office said. Macron is more than two years into his presidency, but some opponents are calling for him to step down as well.

National Assembly Speaker Yael Braun-Pivet on Thursday urged Macron not to waste time choosing a new prime minister, saying France will not be allowed to “drift” for any length of time.

There was no indication early Thursday how soon Macron would name a successor to Barnier, regardless of their political leanings.

Loyal Defense Minister Sebastien Lecornu and senior Macron ally Francois Bayrou are seen as potential contenders, as is former Socialist prime minister and interior minister Bernard Cazeneuve.

With the support of the far-right party, a majority of 331 MPs in the 577-member chamber voted to overthrow the government on Wednesday night. It was the first successful vote of no confidence since the defeat of Georges Pompidou's government in 1962, when Charles de Gaulle was president.

Macron flew back to Paris shortly before the vote after completing a three-day state visit to Saudi Arabia, an apparent world away from the crisis at home.

“We are now asking Macron to leave,” Mathilde Panot, head of the far-left parliamentary group France Unbowed (LFI), told reporters. He called for “early presidential elections” to resolve the looming political crisis.

But careful not to lament the collapse of the government, Le Pen said in a televised interview that her party – once a new prime minister is appointed – will “let it work” and help create a “budget that is acceptable to everyone.”

Laurent Wauquiez, the head of the right wing deputies in the parliament, said that the far right and the left are responsible for the vote of no confidence.

Barnier is the fifth prime minister to serve under Macron since he took office in 2017, all short-term prime ministers in a row.

Given the composition of the National Assembly, there is no guarantee that Barnier's successor will last long.

Strikes in all transport services, education and other government agencies were kept active on Thursday despite the disappearance of the budget cuts that have caused widespread anger.

An entry into more uncertainty comes before the the reopening of Notre-Dame cathedral on Saturday after the fire of 2019, the main international event hosted by Macron.

Guests include Donald Trump, who will make his first foreign trip since he was re-elected for a second term as US president.