The French government collapsed on Wednesday as parliament voted to oust Prime Minister Michel Barnier and his cabinet, throwing the nation into the worst political and fiscal turmoil in decades. Why it matters: The chaos leaves Europe's second largest economy without a functioning government for the first time in 60 years — the most severe fallout to date from the efforts to shrink its deficit.

It marks the first time the country's government has collapsed in a no-confidence vote since 1962. His overthrowing will further France's current political instability, after snap elections in summer led to no single group having a majority in parliament.

France’s minority government appeared to be in its final hours Tuesday as opposition lawmakers from the left and the far right vowed to topple Prime Minister Michel Barnier’s Cabinet. A no-confidence vote is scheduled Wednesday in parliament in the wake of a divisive budget debate,