Political Turmoil in France Sparks Economic Uncertainty and European Concern
The abrupt resignation of Prime Minister Sébastien Lecornu has triggered political instability in France, causing economic turmoil and prompting European scrutiny over the country's leadership and fiscal future.
- • Sébastien Lecornu resigned as Prime Minister after only 14 hours in office, triggering a political crisis.
- • The Paris stock market fell 1.36%, and French 10-year bond rates rose sharply amid financial market concerns.
- • European media criticize President Macron’s handling of domestic issues and question government stability.
- • Lecornu proposed a tax on financial assets, facing pushback from opposition parties and threats of censure.
- • BFMTV faced criticism over footage of Macron, which it says was coincidentally recorded.
Key details
The sudden resignation of French Prime Minister Sébastien Lecornu after just 14 hours in office has plunged France into a deep political crisis with significant economic repercussions. This unprecedented event marked one of the shortest governments in modern European history and has raised serious doubts about the country's political stability and economic future.
Following Lecornu's resignation on October 6, 2025, the Paris stock market dropped by 1.36%, while the 10-year French government bond interest rate surged to 3.61%, its highest level since March, before closing at 3.57%. The euro also weakened against the dollar, reflecting growing investor anxiety. Analysts warned that fears of a return to leftist policies, which could reverse pension reforms and raise taxes, are unsettling financial markets. The spread between French and German 10-year bond rates widened dramatically to 0.85 percentage points, the largest gap since January, signaling rising concerns over France’s fiscal stability ahead of the 2026 budget and the upcoming National Assembly dissolution in June 2024 (ID 90609).
The political chaos has captured widespread attention across Europe. Media outlets describe France as being in "total political impasse," criticizing President Emmanuel Macron for focusing on foreign affairs while neglecting urgent domestic issues. Some British press characterized Macron as a "lame duck" leader. With the lack of clear alternatives, Macron faces difficult choices: appoint a new Prime Minister, who would need to secure a fragile parliamentary majority, or potentially dissolve the National Assembly again. Macron has tasked Lecornu with negotiating a stability pact within two days, though doubts remain about success. Despite the turmoil, the possibility of Macron resigning has been ruled out (ID 90601).
In the political arena, Lecornu recently proposed a "tax on financial assets" as a compromise alternative to the more controversial Zucman tax, arguing that the latter would be detrimental to jobs and the economy. This move has drawn criticism from left-wing parties and the far-right National Rally, which has threatened a censure motion against Lecornu’s government. Meanwhile, tensions simmer as leftist MEP Emma Fourreau began a hunger strike to show solidarity with Palestinians, highlighting the complexity of the political landscape (ID 90463).
Adding to media scrutiny, BFMTV faced accusations of staging footage of President Macron walking alone through Paris shortly after Lecornu's resignation. The broadcaster clarified that the sequence was captured coincidentally by a reporter with no advance notice from the presidency; nevertheless, accusations of orchestrated imagery persist (ID 90576).
The swift collapse of Lecornu’s government has come as a shock to both French citizens and international observers, creating widespread uncertainty about France’s political direction and economic stability. As the nation grapples with these challenges, all eyes remain on President Macron’s next strategy to restore governance and confidence.