France’s new Prime Minister Sebastien Lecornu steps down

Jay Jackson
06 Oct 2025, 14:10 GMT+10

The country's fifth prime minister in the past two years has decided to step down in the face of a deeply divided parliament .
A close ally of French President Emmanuel Macron, Lecornu in now the third prime minister his friend has installed, only to have them fail.
Financial markets reacted quickly and negatively.

PARIS, France - France's new Prime Minister Sebastien Lecornu who was sworn in just a month ago, has resigned.

The country's fifth prime minister in the past two years has decided to step down in the face of a deeply divided parliament battling to finalise a budget.

The move has shocked the country as Lecornu only announced his new cabinet on Sunday. "A government has just been appointed. In line with my commitments, it brings together and reflects the common foundation that supports us in Parliament. No surprises," Lecornu posted on X just 13 hours prior to the time of writing..

"These ministers will have the difficult task of providing the country with a budget before December 31 and serving France," the post said..

"They have accepted this, knowing that they will need to find compromises with our oppositions. Without the 49-3, Parliament will have the final say: that is the true break," Lecornu added. Thirteen hours later and the government he appointed has collaped together with his resignation

A close ally of French President Emmanuel Macron, Lecornu in now the third prime minister his friend has installed, only to have them fail.

Financial markets reacted quickly and negatively. The euro fell nearly a cent to last trade at 1.1659. Bond yields jumped sharply, while the CAC 40, France's benchmark stocks index was down nearly two percent at the time of writing.

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