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,

“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.

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

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.

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 Prime Minister Michel Barnier said the country faces a “storm” in financial markets if an “unlikely but possible” alliance of lawmakers across the political spectrum rejects his government’s budget proposals and votes it out of power.