Group 1 - The French government is facing a severe crisis, with President Emmanuel Macron expected to appoint a new Prime Minister within 48 hours after the resignation of Sebastien Lecornu, marking the shortest tenure in modern French history [1][2] - Lecornu's resignation was prompted by threats of a vote of no confidence from opposition parties and some allies, highlighting the political turmoil in France, where no party holds a majority in parliament [1][2] - Despite unsuccessful negotiations to resolve the crisis, Lecornu expressed optimism that a new Prime Minister could be appointed soon, allowing for the potential passage of the budget by December 31 [1][2] Group 2 - Macron is facing calls for temporary parliamentary elections or resignation, particularly from far-right and far-left politicians, indicating a lack of support for his government [2][3] - The left-wing parties are pushing for significant tax reforms, including a 2% wealth tax on the wealthiest 0.01% and the repeal of unpopular pension reforms, which have garnered public support but alienated conservatives [5] - The political deadlock has caused market concerns, although there was a slight recovery in the French CAC40 index, which rose by 1.1% following Lecornu's cautious optimism about reaching an agreement [5]

Core Points - French Prime Minister Le Cornu resigned after less than a month in office, becoming the shortest-serving prime minister in the Fifth Republic, amid a political deadlock that pressures President Macron to dissolve the National Assembly or resign [1][2] - The 2026 national budget draft has sparked intense debate among parties, with Macron's government aiming to reduce the country's significant deficit, but facing opposition on sensitive issues like pension reform and tax policies [1][2] - Political allies of Macron are increasingly distancing themselves, with former allies publicly calling for Macron to appoint a new prime minister or resign, indicating a potential collapse of his centrist coalition [3] Summary by Sections Political Situation - Le Cornu is negotiating with various parties to form a "stability action plan" within 48 hours, with a report to Macron expected soon [1] - The political landscape has shifted since the 2024 elections, with Macron's centrist coalition losing its majority, allowing opposition parties to easily block proposals and potentially impeach the prime minister [1][2] Budget Draft Controversy - The budget draft for 2026 has led to strong disagreements among parties, particularly regarding pension reforms and tax policies, which are critical to addressing the national deficit [1][2] - If the budget draft fails to pass, it could lead to a "no-budget state," disrupting public services and causing market instability [1] Reactions from Political Allies - Former Prime Minister Édouard Philippe stated that it is Macron's responsibility to find a solution and suggested that he should appoint a new prime minister and consider early presidential elections [3] - There is a growing sentiment among Macron's allies to distance themselves from his administration, with some advocating for a leftist prime minister to be appointed [3] Future Options for Macron - Analysts suggest three potential paths for Macron: appointing a prime minister from outside his coalition, dissolving the assembly for new elections, or resigning, with the first two options being more likely [4] - A motion to impeach Macron was proposed by the opposition but was not accepted by the National Assembly's procedural committee [4]