France woke up on Monday to a new political crisis after Prime Minister Sébastien Lecornu abruptly resigned, just hours after unveiling his new cabinet. The move — unprecedented in modern French politics — left the country without a functioning government or approved 2026 budget, rattling both domestic confidence and European financial markets.
In a statement early Monday, Lecornu denounced what he called the “inconsistency of French political parties” and their unwillingness to cooperate in a fragmented National Assembly.
“All behave as if they had a majority,” he said, accusing rivals of prioritising partisan ambitions ahead of the 2027 presidential race. “The conditions were no longer in place for me to carry out my duties as Prime Minister. One must always put one’s country before one’s party.”
The resignation followed a late-night clash on Sunday with Les Républicains (LR) leader Bruno Retailleau, who had just been named interior minister in Lecornu’s new government. Retailleau accused the prime minister of betraying the promised ‘political renewal’, announcing that he would convene LR’s strategic committee to reconsider the party’s participation.
“The composition of the government does not reflect the promised break,” Retailleau declared, signalling a rupture that ultimately proved fatal for the short-lived cabinet.
According to sources within LR, tensions arose from Lecornu’s decision to centre his government around President Emmanuel Macron’s Renaissance party, sidelining potential coalition partners from both the right and the centre.
A power vacuum at the heart of the Republic
Lecornu’s departure leaves President Macron in a precarious position — facing the dual challenge of forming yet another government and securing parliamentary approval for a delayed 2026 national budget. With no clear majority in the National Assembly, analysts warn of a deepening institutional crisis.
Opposition leaders were quick to respond. Jordan Bardella, head of the far-right National Rally (RN), declared that “there can be no return to stability without new elections and the dissolution of the National Assembly.”
On the left, Jean-Luc Mélenchon of La France Insoumise went further, calling for the “impeachment of Emmanuel Macron.”
Financial markets react
The political shock reverberated through financial markets on Monday morning. Paris’s CAC 40 index fell 1.24% by 10 a.m. CEST, while the STOXX Europe 600 slipped 0.28%. The euro dropped 0.3% against the U.S. dollar, trading at $1.1675, reflecting investor unease over France’s fiscal direction.
Economists warn that prolonged uncertainty could impact France’s credit outlook and weaken its influence in upcoming EU budget negotiations, at a time when the bloc faces mounting fiscal and geopolitical pressures.
As of Monday afternoon, the Élysée Palace had not yet announced an interim government or timeline for appointing a new prime minister — leaving France, and much of Europe, holding its breath.
