France's government collapsed Wednesday after Prime Minister Michel Barnier was forced out in a no-confidence vote in Parliament, reigniting a summertime political crisis for the country as it prepares to face a new year.

Already struggling with flat growth and a large debt and deficit, the country faces a new period of instability without a functioning government or a budget.

The French government collapsed on Wednesday after losing a no-confidence vote, thrusting the euro zone's second-largest economy further into political crisis, and threatening its capacity to legislate and repair its precarious finances.