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 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,

“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.

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 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.