French PM Sébastien Lecornu resigns amid political turmoil, destabilizing Macron government and markets

France's political turmoil deepened as Prime Minister Sébastien Lecornu resigned less than a month after his appointment, marking the shortest tenure for a modern French prime minister. Lecornu's resignation followed fierce criticism of his newly announced Cabinet, which largely retained members from the previous government, including former Finance Minister Bruno Le Maire, now appointed as Defense Minister, a move widely criticized by opposition parties. The conservative Republicans, led by Interior Minister Bruno Retailleau, withdrew support following the Cabinet announcement, exacerbating political instability amid a hung parliament and rising public discontent. This instability has rattled financial markets, with the CAC 40 index falling and French bond yields rising, reflecting growing investor concerns over France's governance and economic future. President Emmanuel Macron faces mounting pressure to dissolve the National Assembly or pursue alternative solutions, though he has so far resisted calls for snap elections. The ongoing political crisis underscores the challenges Macron faces ahead of the 2027 presidential elections, with far-right parties positioning themselves as viable alternatives amid widespread dissatisfaction.