France's new PM resigns sparking fresh political chaos

Source: CNBC

Published Mon, Oct 6 2025 3:51 AM EDT Updated 30 Min Ago


France’s new Prime Minister Sebastien Lecornu has resigned just weeks after his appointment, plunging the country into a fresh Fpolitical crisis.

Lecornu, France’s fifth PM in less than two years, had his work cut out to convince the country — and investors — that he could unite a fractious and divided parliament enough to get a 2026 budget over the line.

With the prospect of a state budget being passed now in doubt, French markets reacted strongly to the news, with the yield on the 30-year government bond, or OAT, hitting a one-month high of 4.441% before retreating slightly. The yield on the benchmark 10-year bond rose to a 10-day high of 3.5990%. Meanwhile, France’s CAC 40 index slumped 1.9% and the euro fell 0.7% against the dollar.

Lecornu was installed in early September against a backdrop of public unrest and dissatisfaction over the messy state of French affairs, after several successive governments failed to pass budgets detailing spending cuts and tax rises.

Read more: https://www.cnbc.com/2025/10/06/frances-new-pm-resigns-as-political-chaos-continues.html