Euro reacts to French budget crisis: France to set up a DOGE?

The euro remains under strain as French PM Michel Barnier faced a no-confidence vote over a divisive budget plan of tax hikes and spending cuts. The vote closed at 8:20 p.m. local time.

President Macron is expected to swiftly appoint a caretaker PM if Barnier’s government collapses, ahead of July elections.

Barnier warned that France’s debt burden—€60bn in annual interest, surpassing defense and education budgets—demands tough fiscal reforms regardless of leadership. Maybe every western nation needs to establish a DOGE (Department Of Government Efficiency)?

EUR/USD traders now eye key technical levels: resistance near 1.0550, with risks of retesting support at 1.0500 and 1.0450 if momentum fades