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.

French lawmakers passed a no-confidence vote against the government on Wednesday, throwing the European Union's second-biggest economic power deeper into a crisis that threatens its capacity to legislate and tame a massive budget deficit.

The French government has collapsed after Prime Minister Michel Barnier lost a no-confidence vote. MPs overwhelmingly rejected his leadership following his use of Article 49-3 powers to push through a budget without parliamentary approval.