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.

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.

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.

French stocks and bonds came under fire on Wednesday, driving the premium the government pays for long-term borrowing to its highest since the euro zone debt crisis of 2012, as investors grew uneasy over the fate of the new government and its budget.