French Prime Minister Lecornu Has Resigned After Cabinet Panned

French Prime Minister Sebastien Lecornu resigned Monday morning, just a day after President Emmanuel Macron named a new cabinet that was broadly criticised.  

French bonds fell as investors braced for more political uncertainty. The yield on 10-year notes rose nine basis points to 3.6%. That widened the nation’s borrowing premium over German debt — a key gauge of fiscal risk — to over 89 basis points, the highest level since late 2024.

Macron named a broadly unchanged cabinet Sunday, which sparked an immediate backlash from opposition parties as well as his own supporters. 

French Socialist Party leader Olivier Faure, whose party holds a potential swing vote in parliament, said Macron’s group is imploding and the new government has no legitimacy left. “We are witnessing an unprecedented political crisis,” he said shortly before Lecornu announced his resignation.