France was thrown into deeper political uncertainty on Monday after Prime Minister Sébastien Lecornu resigned less than a month into office, citing the impossibility of working with a divided parliament.
Lecornu, appointed in early September as Emmanuel Macron’s fifth prime minister in under two years, quit just hours after presenting a new cabinet. His 27-day tenure is now the shortest in modern French history.
“Each political party behaves as if it has its own majority,” Lecornu said in comments carried by France 24. “I was ready to compromise, but every party demanded the other adopt its entire programme. The conditions were not fulfilled.”
Markets react to instability
The sudden resignation rattled financial markets, adding to concerns about France’s fiscal position. The CAC 40 stock index slid 1.6%, the euro lost 0.7% against the dollar, and government bond yields jumped - with the 30-year OAT reaching a one-month high of 4.44% before easing.
The turbulence comes as Paris struggles with a budget deficit of 5.8% of GDP and public debt of 113% of output, far exceeding EU rules. France has already suffered a ratings downgrade by Fitch, with Moody’s expected to follow later this month.
Opposition seizes moment
Lecornu’s departure triggered a torrent of criticism against Macron. The far-right National Rally declared “Macronism is dead on its feet,” demanding the president resign or dissolve parliament. On the left, Jean-Luc Mélenchon of France Unbowed called for Macron’s impeachment, highlighting a motion supported by over 100 MPs.
Political analysts said Lecornu had likely stepped down ahead of a no-confidence vote he was almost certain to lose. His inability to push forward a 2026 budget highlighted the paralysis of a fractured legislature, where neither the left, right, nor Macron’s centrists command a majority.
Macron under growing pressure
For Macron, Lecornu’s resignation marks another blow in a presidency increasingly defined by instability. Since mid-2024’s inconclusive elections, three successive minority governments have collapsed.
“The worst outcome for markets would be a Macron resignation,” said John Plassard of Swiss firm Cité-Gestion, speaking to CNBC. “But France is already showing itself as ungovernable, with no party willing to compromise to address the country’s deep fiscal problems.”
The yield gap between French and German 10-year bonds, seen as a gauge of investor confidence, stood at 87 basis points on Monday. Any further widening, analysts warned, could spell danger for Europe’s second-largest economy.
With Lecornu gone and Macron weakened, France faces yet another test of whether its political class can forge consensus, or whether paralysis will deepen at a time of mounting financial strain.
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