Core Points - French Prime Minister Le Cornu submitted his resignation to President Macron after only 27 days in office, marking the shortest tenure in the history of the Fifth Republic and the seventh prime minister to resign under Macron's presidency [1][2] - The resignation was triggered by strong criticism from opposition parties regarding the newly announced government member list, which revealed significant internal divisions within the government and the ruling coalition [2] - Le Cornu cited the inability to reach compromises with opposition parties, who were more focused on party interests ahead of the 2027 presidential election, as a reason for his resignation [2] Reactions - Various left-wing parties, including the Socialist Party, held emergency meetings to discuss their next steps, while the right-wing Republicans called for calm and consideration for the French people [4] - National Rally leader Bardella urged Macron to dissolve the National Assembly again, stating that Le Cornu had no room for maneuver as Prime Minister [4] - The resignation impacted financial markets, with the yield on French 10-year government bonds rising over 9 basis points, and the CAC40 index dropping by 2% [4] Implications for Fiscal Policy - The resignation of the Prime Minister raises concerns about the progress of the 2026 budget proposal and the outlook for fiscal consolidation in France [5] Macron's Potential Responses - Macron has three options to address the political crisis: appoint a new Prime Minister, dissolve the National Assembly again for early legislative elections, or potentially resign himself, although the latter is considered unlikely [7][8] - Appointing a new Prime Minister may be challenging due to the polarized nature of the National Assembly, making it difficult to gain support from left or far-right factions [7] - Dissolving the National Assembly could risk repeating the previous election results, which would further strengthen opposition parties [7]

Core Points - French Prime Minister Le Cornu submitted his resignation to President Macron after only 27 days in office, marking the shortest tenure in the history of the Fifth Republic and the seventh prime minister to resign under Macron's presidency [1] - The resignation was triggered by strong criticism from opposition parties regarding the newly appointed government members, which led to significant internal divisions within the government and the ruling coalition [1][2] - Le Cornu cited the inability to reach compromises with opposition parties as a reason for his resignation, indicating a lack of conducive conditions for his continued role [1] Group 1: Reasons for Resignation - Le Cornu attempted to negotiate with various political parties to pass the upcoming fiscal and social security budgets but faced resistance from opposition parties focused on their own agendas [1] - The announcement of the new government members, which retained many key positions from the previous administration, sparked backlash from both opposition parties and within the ruling coalition [1][2] - The new defense minister, former finance minister Le Maire, was particularly criticized, leading to threats of impeachment from opposition leaders [1] Group 2: Reactions from Political Parties - Left-wing parties, including the Socialist Party, convened emergency meetings to discuss their next steps following Le Cornu's resignation [3] - The Republican Party expressed dissatisfaction with the new appointments, with party chairman and Interior Minister Bruno Le Tayo hinting at a potential exit from the government [2][3] - National Rally leader Bardella called for the dissolution of the National Assembly, while Mélenchon urged immediate review of impeachment motions against Macron [3] Group 3: Market Impact - The resignation had immediate effects on financial markets, with the yield on French 10-year government bonds rising over 9 basis points, nearing levels seen during the 2011 Eurozone crisis [3] - The CAC40 index in Paris fell by 2% at the market opening following the news of Le Cornu's resignation [3] Group 4: Macron's Potential Responses - Macron has three potential courses of action: appointing a new prime minister, dissolving the National Assembly for early elections, or resigning himself, although the latter is considered unlikely [5] - The current political landscape is highly polarized, making it challenging for a new prime minister to gain support from left or far-right factions [5] - Dissolving the National Assembly could risk further empowering opposition parties, as seen in previous elections [5]