France’s new Prime Minister, Sebastien Lecornu, has resigned just 27 days into his tenure, plunging the country into another round of political instability. This marks the fifth prime ministerial resignation in less than two years, further highlighting the fragile state of French politics.
A Short-Lived Tenure
Lecornu, appointed in early September, faced significant challenges from the outset. His primary task was to unite a deeply divided parliament and secure approval for the 2026 budget. However, just hours after presenting his newly formed cabinet, Lecornu announced his resignation, citing an unworkable political environment.
“Each political party is behaving as if they have their own majority in parliament,” Lecornu explained during his resignation speech at Matignon Palace. “I was ready to compromise, but each political party wanted the other political party to adopt its entire program.”
Economic Challenges
France’s inability to pass critical budgets has left the country in a precarious economic position. The budget deficit for 2024 stands at 5.8% of GDP, while the national debt has soared to 113% of GDP—far exceeding European Union rules. These financial struggles have already led to a downgrade in France’s credit rating by Fitch, with Moody’s expected to follow suit later this month.
The markets reacted sharply to the news of Lecornu’s resignation. The 30-year government bond yield spiked to 4.441%, while the CAC 40 index dropped by 1.6%. The euro also weakened, losing 0.7% against the dollar.
Political Fallout
Lecornu’s resignation has intensified pressure on President Emmanuel Macron, who has struggled to maintain control after his party lost its parliamentary majority in 2024. Critics from both the left and right have condemned Macron’s leadership, with calls for drastic action.
The far-right National Rally declared on social media that “Macronism is dead on its feet,” urging the president to either dissolve parliament or resign. Meanwhile, Jean-Luc Mélenchon of the far-left France Unbowed party demanded Macron’s impeachment, emphasizing the need for immediate parliamentary action.
Is France Ungovernable ?
The political crisis has raised concerns about France’s governability. Analysts warn that the country’s fragmented political landscape makes it almost impossible to pass crucial legislation. According to John Plassard, head of investment strategy at Cite-Gestion, “France is showing itself to be ungovernable.”
Plassard also stressed the potential economic dangers of further political instability, noting the increasing gap between French and German 10-year bond yields. If this spread continues to widen, it could signal severe financial trouble for France.
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