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France Plunges into Political Turmoil as PM Sebastien Lecornu Resigns Hours After Forming Cabinet

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France was thrown into fresh political chaos on Monday after Prime Minister Sebastien Lecornu and his government resigned just hours after announcing a new cabinet line-up, deepening the country’s crisis and sending French stocks and the euro sharply lower. Lecornu, President Emmanuel Macron’s fifth prime minister in two years, stepped down saying he could not perform his duties amid threats from both allies and opposition parties to topple his newly formed government. His administration lasted barely 14 hours — the shortest in modern French history — as divisions within parliament widened.

Opposition leaders swiftly demanded that Macron either resign or call fresh parliamentary elections to end the deadlock that has paralyzed governance since his 2022 re-election. Far-right National Rally leader Marine Le Pen declared that “the farce must end,” while hard-left figure Mathilde Panot said Lecornu’s departure marked the countdown to Macron’s fall. The president, whose mandate runs until 2027, has so far ruled out resignation or another snap election, but his silence following Lecornu’s exit has fueled speculation about France’s next political move.

Markets reacted sharply to the turmoil, with Paris’ CAC 40 index falling over 1.5%, led by losses in banking stocks, and the euro slipping 0.7% to $1.1665. Analysts warned that the ongoing instability — three prime ministers defeated in less than a year — is eroding investor confidence and casting doubt on France’s ability to rein in public debt, which now stands at nearly 114% of GDP. The deepening crisis underscores how the Fifth Republic, founded in 1958 to ensure political stability, now faces one of its gravest tests as Macron’s centrist bloc struggles to hold the balance against a resurgent far-right and hard-left.

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Mass Protests Erupt Across France Against Austerity Plans

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Hundreds of thousands of people across France took to the streets on Thursday in nationwide protests against looming austerity measures, demanding President Emmanuel Macron and his new Prime Minister Sebastien Lecornu scrap planned budget cuts. Teachers, train drivers, hospital staff, and pharmacists joined the strikes, while students blocked dozens of high schools, calling for more public spending and higher taxes on the wealthy.

Union leaders warned the government to heed the anger on the streets, with CGT chief Sophie Binet declaring, “It’s the streets that must decide the budget.” The Interior Ministry had anticipated up to 800,000 demonstrators, and major disruptions were reported in schools and regional train services. Sporadic clashes broke out in cities including Nantes and Lyon, where police used tear gas and several people were injured.

Macron’s administration faces mounting pressure between protesters demanding social fairness and investors alarmed by France’s deficit, which nearly doubled the EU’s ceiling last year. Lecornu, who replaced ousted prime minister François Bayrou after his failed €44 billion budget squeeze plan, has signaled openness to compromise but must navigate a divided parliament. Over 80,000 security personnel were deployed nationwide, with police confirming more than 90 arrests by evening.

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Fitch Downgrade Puts Pressure on New French PM Lecornu Amid Budget Talks

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France’s credit rating has been cut by Fitch to A+ from AA-, its lowest on record, casting a shadow over newly appointed Prime Minister Sebastien Lecornu as he begins budget negotiations. Fitch cited political instability and rising debt for the downgrade, which comes just days after President Emmanuel Macron named Lecornu as his fifth prime minister in two years. While markets reacted calmly, analysts warned the move raises fresh risks ahead of upcoming reviews by Moody’s and S&P.

The downgrade complicates the government’s efforts to present a draft 2026 budget to parliament by early October. Lecornu faces the daunting challenge of balancing investor demands for spending cuts with pressure from unions, who have called nationwide strikes this week, and political blocs divided over tax and reform strategies. In his first interviews, Lecornu scrapped unpopular holiday cuts but left the door open to higher taxes on the wealthy, a move opposed by business groups and conservatives but supported by the Socialists as a condition for backing his government.

With France’s deficit at 5.4% of GDP, Lecornu has pledged to put public finances on a “healthy trajectory,” though he admitted the budget may not fully reflect his own convictions. Employers’ federation MEDEF has threatened mass mobilization against any wealth tax, while the far-right National Rally renewed calls for fresh elections. Analysts warn that continued political gridlock could lead to another downgrade, increasing borrowing costs and straining Macron’s already fragile government.

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French PM Élisabeth Borne resigns ahead of expected reshuffle

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France’s Prime Minister Élisabeth Borne is resigning after less than two years in office, with President Emmanuel Macron gearing up for a significant reshuffling of his top team ahead of European elections later this year. Borne, the second female prime minister in France and the longest-serving in her role, will continue until a successor is named, according to a statement from the Élysée Palace.

President Macron acknowledged Borne’s contributions, stating she displayed “courage, commitment, and determination” during her time in office. Macron’s government has been under pressure due to protests over controversial policies and legislative setbacks, including a significant defeat on immigration legislation in December. The reshuffling is seen as an effort to revive political momentum and address challenges faced by the administration.

Several key figures are speculated to replace Borne, with the 34-year-old Education Minister Gabriel Attal considered the frontrunner. If selected, Attal would become France’s youngest and first openly gay prime minister. Other potential candidates include 37-year-old Armed Forces Minister Sebastien Lecornu and former Agriculture Minister Julien Denormandie.

The announcement of a new prime minister is expected on Tuesday, according to a spokesperson for the Élysée Palace. The chosen candidate will face the daunting task of managing the day-to-day affairs of the government and leading the Council of Ministers. Macron’s party lost its parliamentary majority in 2022, making it challenging for the incoming prime minister to navigate the political landscape and turn the president’s policies into law. The upcoming appointment will mark the fourth prime minister since Macron’s initial election in 2017.

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