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French Markets Plummet as Prime Minister Lecornu Resigns

Lecornu's resignation, barely a month into his tenure, sends shockwaves through French markets. Opposition parties demand new elections as President Macron faces another prime ministerial appointment.

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In the picture there is a newspaper front page. There are many advertisements and headlines are mentioned in the newspaper.

French Markets Plummet as Prime Minister Lecornu Resigns

French markets and currency have taken a hit today following the resignation of Prime Minister Sebastien Lecornu. The Cac 40 and Cac Next 20 indices have both fallen significantly in early trading, while the euro has weakened against both the dollar and the pound.

The political crisis in France has deepened with Lecornu's resignation, barely a month into his tenure. He stepped down just a day after President Emmanuel Macron announced a new cabinet. This marks the sixth prime minister since Macron took office in 2017, highlighting the instability in French politics.

The economic impact of the political turmoil is evident in the financial markets. French stocks have plummeted, and government borrowing costs have climbed sharply. The yield on French government bonds has reached 3.6%, the highest in 14 years. The spread between French and German bonds has widened to its highest since late 2024. Notably, France's borrowing costs have surpassed those of Italy and Greece.

In response to Lecornu's resignation, opposition parties are calling for new elections. The right-wing Rassemblement National, led by Jordan Bardella and Marine Le Pen, demands either the dissolution of parliament or Macron's resignation. Meanwhile, the left-populist party La France Insoumise, led by Jean-Luc Mélenchon and Mathilde Panot, calls for Macron's removal. The Socialist party, while more cautious, urges Macron to address public expectations.

The resignation of Prime Minister Lecornu has sent shockwaves through French markets, with stocks tumbling and borrowing costs climbing. The political crisis, now deepened, has led opposition parties to call for new elections. President Macron faces the challenge of appointing his seventh prime minister since the start of last year, further adding to the instability in French politics.

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