French PM Sébastien Lecornu resigns after 27 days, plunging Emmanuel Macron into fresh turmoil

France was pitched into renewed political crisis on Monday after Prime Minister Sébastien Lecornu resigned barely four weeks into the job, making him the country’s shortest-serving head of government.

Lecornu, a former defence minister and close ally of President Emmanuel Macron, stepped down just hours after unveiling a new cabinet on Sunday, citing the impossibility of governing with a fragmented parliament.

“Each political party is behaving as if they have their own majority in parliament,” Lecornu said in remarks reported by France 24. “I was ready to compromise, but each political party wanted the other to adopt its entire programme. The conditions were not fulfilled.”

His departure after just 27 days leaves Macron scrambling for yet another replacement, his fifth prime minister since his 2022 re-election, underscoring the paralysis that has gripped French politics since inconclusive parliamentary elections last year.

Budget crisis looms

Lecornu had been tasked with the difficult job of pushing through a 2026 budget to address France’s ballooning 5.8% deficit and debt at 113% of GDP, levels far above EU thresholds. But divisions across the left and right meant little progress was made.

Financial markets reacted swiftly. The CAC 40 index slid 1.6%, the euro dropped 0.7% against the dollar, and French bond yields spiked, with the 30-year OAT climbing to 4.44% before easing. Analysts warned that political instability could further erode investor confidence after Fitch downgraded France last month, with Moody’s expected to follow in late October.

Macron under fire

Opposition parties wasted no time blaming Macron for the turmoil. The far-right National Rally declared on X that “Macronism is dead on its feet,” urging the president to dissolve parliament or resign. On the far left, Jean-Luc Mélenchon of France Unbowed demanded Macron’s impeachment, citing a motion already backed by 104 MPs.

Analysts said Lecornu’s resignation may have spared him the humiliation of a looming no-confidence vote, but left Macron’s minority government even more vulnerable.

“The worst-case scenario for markets would be Macron resigning,” John Plassard, partner at Swiss firm Cité-Gestion, told CNBC. “France is showing itself to be ungovernable, with parties unwilling to make the crucial decisions to deal with its problems.”

The spread between French and German 10-year bonds, a key measure of investor confidence, stood at 87 basis points on Monday, with fears it could widen further if the political deadlock persists.

Macron, who has already overseen three failed minority governments since mid-2024, now faces the toughest test of his presidency as France grapples with both political paralysis and mounting economic strain.