By Harry Robertson and Amanda Cooper LONDON (Reuters) -French stocks and bonds fell sharply on Wednesday, driving the premium the government pays for long-term borrowing to its highest since the euro zone debt crisis of 2012,

French MPs have spent weeks debating the Barnier government’s hastily prepared budget, which includes €40 billion in spending cuts and €20 billion in tax hikes. The bill aims to reduce the French budget deficit, which is projected to hit 6.1 percent of gross domestic product in 2024.

French Prime Minister Michel Barnier faces a significant political challenge as his budget proposal encounters resistance in a divided parliament. His coalition could collapse if a no-confidence motion is pushed by opponents,

The future for French Prime Minister Michel Barnier's government looks bleak, with his struggles to push the 2025 budget through a polarised parliament increasingly likely to end in the toppling of his fragile coalition.

France is on the brink of a political crisis, as the minority government led by Prime Minister Michel Barnier risks losing the confidence of parliament. A vote of no confidence could result in the government's resignation,

French lawmakers have spent weeks debating a budget proposal that has threatened to topple Barnier's cabinet. #EuropeNews

A bitter debate is now unfolding inside the ruling class over how to recalibrate its policies, that will confront it, sooner rather than later, with explosive working class opposition.

“This is a very serious moment,” Barnier said in an interview with French broadcaster TF1. PARIS — French Prime Minister Michel Barnier said Tuesday that France could face fiscal calamity should lawmakers decide to topple his government over a budget dispute.