France’s new Prime Minister, Sebastien Lecornu, has announced his resignation just weeks after taking office, making him the country’s shortest-serving prime minister.
The resignation leads France into a new economic crisis, with the prospect of a state budget being passed now in doubt.
French markets responded to the news with the OAT reaching a one-month high of 4.441%, then slightly retreating, while France’s CAC 40 index dropped 1.6% and the euro declined 0.7% against the dollar.
Lecornu is France’s fifth PM in less than two years.
On resignation, Lecornu said “each political party is behaving as if they have their own majority in parliament” and that the “conditions were not fulfilled” to remain in his position.
“I was ready to compromise, but each political party wanted the other political party to adopt its entire program.”
Lecornu’s departure coincides with analysts suggesting he and his minority government are likely to face a no-confidence motion. Political rivals, holding opposing ideological fiscal positions, have been demanding concessions from recent governments over the budget.
The gap, or “spread,” between France and Germany’s 10-year bonds — a reflection of investors’ perception of their respective government debt — currently stands at 87 basis points.
By CEO NA Editorial Staff
