France has been thrown into fresh political turmoil after Prime Minister Sebastien Lecornu resigned on Sunday, barely weeks after taking office — making him the country’s fifth prime minister in less than two years.
Lecornu’s abrupt departure, coming just hours after he unveiled a new cabinet, deepens the crisis facing President Emmanuel Macron, who is struggling to maintain stability amid growing political fragmentation and economic uncertainty.
Appointed in early September, Lecornu — a former defence minister and longtime Macron ally — had been tasked with uniting a deeply divided National Assembly and steering through the country’s contentious 2026 budget. His resignation now casts serious doubt over France’s ability to pass a budget and restore investor confidence.
Financial markets reacted sharply to the announcement. The yield on France’s 30-year government bond (OAT) briefly climbed to a one-month high of 4.441% before easing slightly, while the 10-year benchmark bond rose to a 10-day high of 3.599%. The CAC 40 index fell 1.9%, and the euro weakened by 0.7% against the dollar.
Lecornu had inherited a difficult political landscape following months of public discontent and parliamentary deadlock over stalled fiscal reforms, including unpopular spending cuts and tax increases. His short-lived government was due to hold its first cabinet meeting on Monday, following the release of a largely unchanged ministerial lineup.
The resignation leaves Macron facing his third failed minority government, adding pressure on the president to find a leader capable of bridging the deep ideological divisions in parliament.
Lecornu had been scheduled to deliver his first major address to the National Assembly on Tuesday, outlining his government’s economic roadmap — including plans to rein in a budget deficit of 5.8% and tackle a public debt level of 113% of GDP recorded in 2024.
Those figures stand well above European Union fiscal rules, which cap member states’ budget deficits at 3% of GDP and public debt at 60% of economic output.
Both investors and European Commission officials in Brussels were closely watching how France intended to bring its finances in line with EU standards. Lecornu’s exit now leaves that question unanswered, with uncertainty over who will lead France’s next government — or whether Macron can still command enough parliamentary support to avoid new elections.
Source:Africa Publicity
