Le Pen threatens to topple French government TODAY - barring 'last minute miracle'

Jordan Bardella, president of National Rally (RN), said the move would proceed "unless there is a last minute miracle" from Barnier.

A no-confidence vote could take place as early as Wednesday, potentially marking the first time a French government has fallen through such a measure since 1962.

The crisis comes as Barnier's fragile coalition government relies on tacit support from Le Pen's party.

The RN has labelled the government's proposals as a "budget of punishment that will weaken the purchasing power of our compatriots," according to Bardella.

While Barnier dropped a planned electricity tax increase last week, the party is demanding further concessions.

These include raising pensions in line with inflation, rather than the government's proposed below-inflation increases.

The National Rally also wants planned cuts to medication reimbursements scrapped and opposes potential gas tax hikes.

The party is additionally pushing for a reduction in France's contribution to the European Union's budget.

As the political crisis deepens, investors have reacted by punishing French stocks and bonds, while also selling the euro.

In an unprecedented development, French borrowing costs have risen above those of Greece for the first time on record.

Government spokesperson Maud Bregeon told CNews television the government remained "open to dialogue" to avoid financial chaos.

"I'm very worried about what would happen in coming days and months... who will come to France to set up a business or a plant amid such uncertainty?" she warned.

The uncertainty has raised concerns about France's ability to attract future business investment.

Pierre Moscovici, head of France's public audit office, has issued a stark warning about the nation's financial outlook.

"Our financial situation today is dangerous," Moscovici told France 2 television.

He expressed particular concern about the risk of France's budget being blocked in parliament.

If Barnier fails to secure enough support for the social security financing bill, he could use constitutional powers to force it through - though this would likely trigger another no-confidence motion from the Left.