French President Emmanuel Macron addressed the nation on Thursday, hours after Prime Minister Michel Barnier handed in his resignation following Wednesday's vote of no-confidence.

Macron rejected calls from the opposition to follow Barnier in stepping down, saying he would remain in office until the next presidential election in 2027.

He vowed to "appoint a prime minister in the coming days" saying that this person would be tasked with forming a "government of general interest" in order to pass a budget.

The president also accused the left-wing and far-right parties that voted to topple the prime minister of being an "anti-republican front."

"They are not thinking about your lives, let's be honest. They are thinking of just one thing: the presidential election," he said during his televised address.

Barnier hands in resignation

Barnier met with Macron at the Elysee Palace in Paris on Thursday to submit his resignation, making him the shortest-serving prime minister in modern French history.

"The prime minister today submitted the resignation of his government" to Macron, who has "taken note" of the resignation, the Elysee said.

Barnier and his ministers remain "in charge of daily business until the appointment of a new government," it added.

The premier stepped down after lawmakers voted to oust his minority government in a no-confidence motion on Wednesday.

The move came after Barnier forced through an unpopular budget bill in an attempt to cut France's high fiscal deficit. 

The plan contained tax increases and spending cuts worth €60 billion ($63.1 billion), aimed at bringing the deficit to 5% of economic output in 2025 from an estimated 6.1% this year. The aim is to trim the deficit down to 3% by 2029.

It was seen as an attempt to steer the French economy into calmer waters. 

What's in store for the new PM?

MPs from the far-left and far-right parties opposed the passing of the budget. They subsequently joined forces to back the no-confidence vote, with 331 legislators voting in favor of the motion, out of a total of 577 lawmakers.

The development threatens to plunge the country deeper into political turmoil.

Macron appointed Barnier as prime minister on September 5, after snap elections in the summer produced a hung parliament in which no party won an outright majority.

The National Assembly has since been split into three distinct blocs, with 182 seats for the leftist coalition, 168 for President Macron's centrists and 143 for the far-right National Rally, headed by Marine Le Pen.

The divided lower house has made it tough for the government to push through legislation, including the 2025 budget.

Though Macron is expected to appoint a new prime minister, they will face the same challenges that led to Barnier's downfall.

The political instability has raised concerns about France’s economy, with fears that the government's collapse could push up interest rates on French bonds, aggravating the country's debt woes.

What will Macron do next?

Some opposition politicians have called for Macron to step down.

"I believe that stability requires the departure of the president of the Republic," said Manuel Bompard, leader of the far-left France Unbowed party, on BFM TV Wednesday night.

But Macron has dismissed such calls. "I was elected to serve until 2027, and I will fulfill that mandate," he told reporters earlier this week.

The political stalemate will likely continue as new parliamentary elections cannot be held until next summer.

sri/rc (AFP, Reuters, AP, dpa)