France's Lecornu Resigns After 28 Days, Sparking Market Turmoil
France's political landscape has been shaken by the unexpected resignation of Prime Minister Sébastien Lecornu, who stepped down after less than a month in charge. This sudden departure has sparked concerns about the country's financial management and stability.
The news of Lecornu's resignation sent shockwaves through the French economy. The CAC 40 stock market index plummeted by 2 per cent, with banks bearing the brunt of the losses. French government bond yields also surged, climbing 8 basis points to 3.59 per cent. This sell-off in stocks and bonds has led to market jitters spreading across Europe, with the pan-European Stoxx index dropping by 0.5 per cent. Lecornu's resignation follows a string of changes in French leadership, marking the third prime minister since the summer 2024 elections. The frequency of these changes has raised fears of a potential crisis.
Market analysts have expressed concern about the implications of Lecornu's resignation. Chris Beauchamp, chief market analyst at IG, has warned that President Emmanuel Macron's presidency could be at risk if the trend continues.
The resignation of Sébastien Lecornu has left France grappling with economic uncertainty. With the country's financial management under scrutiny and markets reacting negatively, the government must act swiftly to restore confidence and stability. The appointment of a new prime minister, whose name has not yet been disclosed, will be crucial in navigating these challenging times.
