The resignation of Sébastien Lecornu, France's short-lived prime minister (26 days), sent the Paris stockmarket index tumbling on Monday, October 6, 2025, with the CAC 40 down 1.6% shortly after the announcement. Banks were on the front line, with falls of 4% to 5% for Société Générale, Crédit Agricole, and BNP Paribas.
The spread between the cost of French and German debt rose to 85 points (+5%).
France is currently experiencing a major political crisis, characterized by chronic governmental instability, a fragmented parliament, and growing social unrest. After the 2024 legislative elections, no clear majority emerged in the National Assembly, forcing President Emmanuel Macron to form either coalition or minority governments. One of the most recent governments, led by François Bayrou, was brought down in September 2025 by a large vote of no confidence (364 votes to 194), mainly due to the unpopularity of his proposed austerity measures. His successor, Sébastien Lecornu, was appointed in a highly unstable context without a guaranteed parliamentary majority. His decision to appoint numerous members from Macron's political party provoked dissatisfaction among other parties and ultimately forced him to resign.
