fstockFrance’s benchmark CAC 40 index tumbled over 2% on Monday following the shock resignation of newly appointed Prime Minister Sébastien Lecornu, less than 15 hours after unveiling his cabinet. The Elysee Palace confirmed that President Emmanuel Macron accepted Lecornu’s resignation early Monday morning, plunging the French political landscape into renewed uncertainty.
At 10:04 am CET, the CAC 40 fell 2.07%, while the Euro Stoxx 50 declined by 0.76%. Germany’s DAX edged 0.15% lower, and the UK’s FTSE 100 slipped 0.22%. In currency markets, the euro weakened 0.69% against the US dollar to $1.16569, while the pound was down 0.30% at $1.34348.
Lecornu’s abrupt exit came just hours after France unveiled its widely criticized “continuity government,” which retained 11 ministers from the previous administration. The cabinet faced immediate backlash for its lack of renewal amid weeks of protests and political pressure over proposed spending cuts.
The resignation has raised concerns over the stability of Macron’s government, especially as France grapples with slowing economic growth, rising debt, and persistent social unrest. Investors reacted sharply, leading to one of the steepest intraday declines for the CAC 40 in recent weeks.
Analysts noted that political instability could weigh on France’s fiscal reform plans and dampen investor sentiment across European markets in the short term.
