French Political Crisis Deepens as Lecornu Government Collapses Within Hours

France was plunged into fresh political turmoil on Monday after newly appointed Prime Minister Sébastien Lecornu and his government resigned only hours after unveiling their cabinet, marking the shortest-lived administration in modern French history.

The shock resignation came barely 14 hours after Lecornu announced his ministerial team, sending the euro and French stocks sharply lower as markets reacted to the renewed instability at the heart of Europe’s second-largest economy.

A Government That Lasted Less Than a Day

Lecornu, who served as Prime Minister for just 27 days, handed his resignation to President Emmanuel Macron early Monday morning following fierce backlash over his cabinet appointments. Both political allies and opponents criticized the lineup — some deeming it too right-leaning, others not right-wing enough — further eroding confidence in an already fragile government.

The Elysée Palace confirmed the resignation in a brief statement:

“Mr. Sébastien Lecornu has submitted the resignation of his government to the President of the Republic, who has accepted it.”

Opposition Parties Demand Elections

The abrupt collapse of the Lecornu government reignited calls for a snap parliamentary election from opposition parties.

• Jordan Bardella, leader of the far-right National Rally, declared, “There can be no return to stability without a return to the polls and the dissolution of the National Assembly.”
• Mathilde Panot, from the hard-left France Unbowed, said the resignation proved Macron’s administration was in “terminal decline,” adding: “Three prime ministers defeated in less than a year — the countdown has begun. Macron must go.”

Deepening Political Instability

The episode underscores the growing volatility in French politics since Macron’s 2022 re-election, which left him without a working parliamentary majority. Last year’s snap elections, intended to restore order, instead produced an even more fragmented National Assembly, leaving France struggling to form stable governments.

Lecornu’s downfall makes him Macron’s fifth prime minister in two years, further cementing the perception of political paralysis at the top of French governance.

Market Reaction: Euro and CAC 40 Slide

The political chaos rattled financial markets. The CAC 40 index plunged 2%, its sharpest one-day drop since August, led by steep losses in the banking sector. Shares in BNP Paribas, Société Générale, and Crédit Agricole fell between 5.7% and 7.3%, dragging the broader European market lower.

Meanwhile, the euro dropped 0.7% to $1.1665, as traders fled to safer assets amid uncertainty over France’s political trajectory and potential fiscal disruptions.