On Wednesday, French lawmakers will vote on whether to express no confidence in the embattled Barnier government.

• On Wednesday, the French government of Michel Barnier will face a no-confidence vote in the National Assembly.
• If either measure is approved by parliament, there is a strong possibility that the government will step down, as seen by the left wing and far right uniting.
• The budget bill, which proposes 60 billion euros ($63.16 billion) in tax increases and spending reductions to address France's deficit, faced stalemate over the weekend.

On Wednesday, the French government of Michel Barnier will face a no-confidence vote in the National Assembly.

The National Assembly announced that the motions tabled by the opposition left-wing bloc and the far-right National Rally party will be debated at approximately 4 p.m.

The government must step down if the either measure is approved by parliament.

On Monday, French Prime Minister Barnier exercised special constitutional powers to pass a contentious budget bill without parliamentary approval.

The center-right government is expected to be ousted by an alliance between the left and right.

Holger Schmieding, Berenberg's Chief Economist, warned last week that Marine Le Pen's right-wing Rassemblement National [National Rally] has Barnier under its control, and that a no-confidence vote could topple him if the united Left supports it.

The budget bill, which proposes 60 billion euros ($63.16 billion) in tax increases and spending reductions to address France's deficit, faced stalemate over the weekend.

If the government is toppled, new parliamentary elections cannot be held until June 2022, 12 months after the last snap vote called by French President Emmanuel Macron this year.

A new prime minister must be appointed by Macron, a politically charged task given the fractured nature of the current parliament.

After the Wednesday vote was confirmed, France's CAC 40 index increased by 0.57%, while the euro rose 0.3% against the U.S. dollar. However, French bond yields remained unchanged.

Despite economists' predictions, political instability in France could negatively impact its assets, as uncertainty has already caused French borrowing costs to reach a 12-year high compared to Germany, and are now at the same level as Greece.

- CNBC's Holly Ellyatt contributed to this story.