Leo Barincou, senior economist at the Oxford Economic Research Institute, said that the impending collapse of the French government will not cast a large shadow over the already bleak outlook. Prime Minister Barnier's fragile government will face a vote of no confidence on Wednesday, which could mean the government's downfall. The months-long bargaining in the deeply divided National Assembly on budget issues has been fruitless. The collapse of the government will intensify panic in the currency market. However, considering the current uncertainty, this will not worsen France's fiscal problems too much. In this situation, the government will continue to operate based on the budget of the previous year to avoid shutdown until President Macron nominates a new prime minister to draft a new budget.
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Instituto de Economia de Oxford: A queda do governo francês não deve ter um impacto significativo
Leo Barincou, senior economist at the Oxford Economic Research Institute, said that the impending collapse of the French government will not cast a large shadow over the already bleak outlook. Prime Minister Barnier's fragile government will face a vote of no confidence on Wednesday, which could mean the government's downfall. The months-long bargaining in the deeply divided National Assembly on budget issues has been fruitless. The collapse of the government will intensify panic in the currency market. However, considering the current uncertainty, this will not worsen France's fiscal problems too much. In this situation, the government will continue to operate based on the budget of the previous year to avoid shutdown until President Macron nominates a new prime minister to draft a new budget.