French Prime Minister Michel Barnier is bracing for a no-confidence vote this week, a political reckoning poised to topple his fragile government and send shockwaves across the eurozone.

The French government is all but certain to collapse later this week after far-right and left-wing parties submitted no-confidence motions on Monday against Prime Minister Michel Barnier. Investors immediately punished French assets as the latest developments plunged the euro zone's second-biggest economy deeper into political crisis,

Barring a last-minute surprise, Barnier's fragile coalition will be the first French government to be forced out by a no-confidence vote since 1962. A government collapse would leave a hole at the heart of Europe, with Germany also in election mode, weeks ahead of Donald Trump re-entering the White House.