Last Monday, France had a déjà vu moment with yet another French prime minister leaving the job. In this case, it was Sébastien Lecornu, who spent a mere 27 days in the role — a record low since 1958. By late Friday, French President Emmanuel Macron had reinstated Lecornu.
Lecornu stepped down amid a parliamentary stalemate over his inability to pass budgets and address other financial matters. It was also the day after he had established a cabinet. “One cannot serve as prime minister when the necessary conditions are not met,” he said in a speech Monday, according to Le Monde. The conditions required to get the French budget passed were absent, along with Social Security, he said. “[These are] matters that cannot wait until the 2027 presidential election,” he said.
MACRON TO APPOINT FOURTH PRIME MINISTER IN A YEAR AS DEBT BATTLE TOPPLES CENTRIST LEADER
Lecornu’s sudden resignation shocked Macron, sent the French stock market tumbling and prompted Germany to emphasize the need for France to maintain political stability. That includes the elephant in the room: reducing France’s debt level. Unfortunately, intra-party cooperation doesn’t seem likely anytime soon.
Unfortunately for France, waiting until 2027 for some stability is likely. “The way out of the stalemate will be a new president with a clear mandate,” Leo Barincou, a senior economist at Oxford Economics in Paris, told Fox News Digital. “Then we can proceed, but for now we are stuck.”
During the days following the resignation, there were calls for Macron to call a presidential election. Notably, Edouard Philippe, Macron’s first pm and an ally, demanded that an election be held. If that were now, it would be a year and a half before what was scheduled. He described the current situation as a “distressing political game.”
FRENCH RIGHT-WING NATIONAL RALLY PARTY HQ RAIDED BY POLICE IN ‘HARASSMENT OPERATION’
Nothing came of calls for a new presidential election last week. That might be because it could favor the right-wing National Rally party. The party is polling well, with 35% of voters saying they will vote for the National Rally (NR), 10 percentage points more than for a broad parliamentary leftist alliance, according to Reuters. That gain is because the NR is addressing high taxes and wasteful government spending. “The National Rally is doing well in this current high-tax situation,” Elias Haddad, senior markets strategist at Brown Brothers Harriman, told Fox News Digital. In addition, Macron is determined to see out his second term through 2027.
Late Friday, after hours of discussion, news came that Lecornu was reappointed by Macron. He posted the following on X: “Out of duty the mission entrusted to me by the president, to do everything to provide France with a budget by the end of the year and respond to the everyday problems of our compatriots.”
While that promise sounds good, it remains to be seen whether the reinstated Lecornu will achieve it. “The National Assembly is deeply divided,” Haddad said.
A lot stands on getting France’s finances straight, but it doesn’t look easy. The deadline for a new budget is Oct. 13, which likely won’t get met, although there are ways to extend the 2025 budget into 2026. Also, the country’s massive debt needs to be dealt with. It recently stood at 113% of the country’s GDP last year, surpassing Spain’s 102% of GDP.
It’s not just France that’s concerned. Neighboring Germany appears worried about the political crisis, the lack of fiscal discipline and French stability. The instability in France — the second-largest economy in the eurozone behind Germany — could spread across the EU. The French economy is vital for stabilizing the European economy, said Rasmus Andresen, a member of the European Parliament for the Green Party. “France right now also has a huge impact on Europe and especially on the countries closest.” he told France 24.
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