Emmanuel Macron is set to appoint a new prime minister within 48 hours to resolve France's political deadlock. Image: The Financial Times.
(The Post News)– France’s political spotlight returns to Paris as President Emmanuel Macron is to appoint a new prime minister within the next 48 hours, following the fifth premier in less than two years, Sébastien Lecornu, quitting. The move will try to bring to an end months of political deadlock that have left the second-largest European economy grappling to approve a national budget and curb its rising debt.
The Élysée Palace informed on Wednesday evening that Macron would make his choice by Friday night, thanking Lecornu for laboring to mediate between rival parties in the hung parliament. “There is a platform of stability,” the office of the president said, revealing that most lawmakers are now opposed to dissolving parliament and holding snap elections, something that would be most likely to benefit the far-right National Rally party under Marine Le Pen.
Political Turmoil and Economic Pressure
Lecornu’s resignation, which was announced Monday, underscores the deepening crisis of Macron’s presidency. France’s National Assembly has been at an impasse since Macron’s centrist coalition lost its majority in last year’s snap election, convened in a failed attempt to “restore clarity.” Instead, the result left the president with a divided parliament and an emboldened opposition on both the far left and right.
Outgoing Prime Minister Lecornu had been told to have 48 hours of emergency talks to agree on France’s 2026 budget and avoid a dissolution of parliament. On Wednesday night, he indicated that the majority of legislators believed the agreement was possible.
“I think an avenue is possible,” said Lecornu to France 2 television. “The prospects of a dissolution are disappearing, and the situation allows the president to appoint a prime minister within 48 hours.”
With Lecornu out of the way, Macron now has the difficult balancing act to undertake: select a candidate who can form a coalition government and pass the budget through parliament without reopening the political storm. The president could, in analysts’ views, opt for a “neutral” technocrat rather than another centrist ally.
“After trying out three center-right individuals, Macron will probably select a more centrist politician to lead a technical government with only one mission: passing the budget,” said Nabil Milali of Edmond de Rothschild Asset Management. “But it will be difficult to find someone acceptable to left and right alike, and concessions will continue to have to be made to the Socialist Party, still the kingmaker.”
Socialists indicated they might support a fresh government in exchange for major policy concessions, such as reopening Macron’s controversial 2023 pension overhaul that raised the retirement age to 64 from 62.
That overhaul remains the most contentious issue in French politics. The center-right Les Républicains are firmly opposed to changing it, with the left demanding it be scrapped. Economists warn that it would be costly to do so, both financially and politically.
“Freezing or cancelling the pension reform would cost about €13 billion a year,” said Eric Chaney, economic advisor to Institut Montaigne and former AXA chief economist. “It would also reduce older people’s labor market activity, reduce GDP, and reduce public finances. First and foremost, if France can’t do pension reform, then what reforms can it do? That would be catastrophic.”
Market Reaction and Investor Jitters
French stocks welcomed the new news warily. The CAC 40 index rose 1.1% on Wednesday on the expectation of an eventual political deal. The yield on 10-year French government bonds dipped to 3.52%, although France’s premium over Germany for borrowing remains near 2012 highs, an indication that investors are worried about the country’s finances.
The budget deficit of France increased to 5.8% of GDP in 2024, while the national debt is the third-highest in the eurozone, next only to Greece and Italy. Government failure to pass spending measures sent financial markets into tremors, causing fear from Brussels that France has not been fiscally responsible.
Macron is coming under mounting pressure not to call another election that would see the far-right Marine Le Pen’s National Rally trounce him with a runaway win. The opinion polls have her party ahead with around 32% backing, followed by the left-leaning New Popular Front with 25%. Both sides are calling for snap elections, believing they can surf Macron’s flagging popularity.
For now, the president is banking on compromise and on the skill of a prime minister to bring it. Whomever he selects between a technocrat and a seasoned political operator, the mission is the same: consolidating a fractured parliament, building back investor confidence, and protecting his political legacy before the 2027 presidential election.
As Lecornu put it before quitting, “It’s not the time to replace the president. It’s time to make France governable again.”
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