Paris markets are shaken .. Lucurno leaves his position weeks after his appointment

A new political blow received by French President Emmanuel Macron on Monday morning, after Prime Minister Sebastian Lucurno submitted his sudden resignation from his post, just a few weeks after assuming the presidency of the government, in a move that confused political and economic circles and re -asked the question of stability in the second largest European economy.

This sudden resignation comes just one day from Macron to form a new government that was an attempt to restore confidence after a series of political crises, but Lucurno’s sudden resignation deepened the crisis and raised real concerns about the ability of Paris to pass the 2026 budget in the shadow of a strong parliament and opposition.

After the announcement, the French markets witnessed a sharp decline, as the CAC 40 index decreased by 1.9 percent, and the euro fell 0.7 percent against the dollar, while the returns of long -term government bonds increased to the highest levels in weeks, as the revenue of the thirty -year bonds reached 4.44 percent.

According to a report by the CNBC network, this rise in the returns expanded the difference between the cost of French borrowing and its German counterpart to more than 89 basis points, the highest level since late 2024, reflecting the increasing financial risks associated with political instability in France.

Lucurno, who was considered one of the closest allies of President Macron and previously held the position of Minister of Defense, has faced since his assumption of the prime minister in September, a series of challenges, most notably the sharp division in Parliament and the escalation of popular protests against austerity economic policies.

Analysts believe that this resignation represents a new failure of Macron to stabilize stable governments, as Lucurno’s fifth resignation is for a French prime minister in less than two years, making it difficult to pass any major financial or economic reforms.

On Tuesday, Lukorno was supposed to give a speech to the National Assembly to present his government’s road map, but his sudden resignation canceled the event, and prompted investors to a state of panic, amid expectations that the political fog will continue for the coming weeks.

For his part, the leader of the French Socialist Party, Olivier, said, “The Macron team is completely collapsing, and the new government lost its legitimacy before it begins its work,” describing the situation as an “unprecedented political crisis in the history of the fifth republic.”

Economists believe that the continuation of these turmoil may lead to a decline in confidence in the French economy, and affects the ability of Paris to adhere to the European Union’s financial standards, as the budget deficit reached 5.8 percent of the GDP, and the general debt is 113 percent of the output, or about twice the maximum allowed by Brussels.

The current scene in France is a real test for President Macron, who faces widespread criticism from the opposition and from within its political camp alike, amid fears that the government void will lead to long -term economic and political paralysis in the heart of Europe.