France is in a deep political crisis after Prime Minister Sebastien Lecornu and his government resigned just 14 hours after being appointed. This marks the shortest-lived government in modern French history. The resignation came after allies and opponents alike threatened to topple the new government, citing the cabinet lineup as too right-wing or not right-wing enough.
French politics has become increasingly unstable since Macron’s re-election in 2022, with no party or grouping holding a parliamentary majority. The new cabinet lineup angered opponents and allies, raising questions about its longevity. France’s debt has risen to 113.9% of GDP, and the deficit was nearly double the EU’s 3% limit last year. Opposition parties, including the far-right National Rally and hard left France Unbowed, are urging President Emmanuel Macron to call a snap parliamentary election or resign.
The crisis has also affected the Market Impact with the euro sliding from 0.7% to $1.1665, and Paris’ CAC 40 dropping 2%, making it the worst-performing index in Europe.
President Macron could call new snap elections, resign, but the current political instability may continue, given the fragmented parliament and lack of clear majority.
