Within minutes of Prime Minister Sebastien Lecornu’s resignation, France has been hit with a major economic turmoil.
On Monday, October 6, Reuters reported that the French PM stepped down from his position less than a month after taking office, making him the shortest-serving prime minister in the country’s history.
The decision was announced hours after he unveiled his new cabinet on October 5, which faced immediate backlash from both allies and opposition parties, threatening to topple his government.
Minutes after the shocking news made headlines, the outlet reported that France was hit with a major economic setback due to Lecornu’s sudden resignation.
Lecornu’s resignation ignited a political crisis in France, sparking fear and uncertainty among investors, which resulted in a drop in both the euro and French stocks.
The country’s economy – which is the second-largest in the euro zone – has become unstable as the Paris stock market (CAC 40) dropped 2%, the biggest fall in Europe today.
Moreover, bank stocks were hit hard, with BNP Paribas, Societe Generale, and Credit Agricole all losing 4–5% of their value.
The euro also fell by 0.7%, reaching a value of $1.1665.
Danske Bank analyst Kirstine Kundby-Nielsen stated, "It’s concerning that the new cabinet only lasted 12 hours There seems to be no willingness in parliament for a budget to be passed, so I think yields higher, pressure on euro-dollar in the near term.”
Sebastien Lecornu, a former defense minister, was President Emmanuel Macron’s fifth prime minister in two years.
