Paris: Sébastien Lecornu took charge as France’s new prime minister on Wednesday, but his first hours in office were marked by unrest in the streets and unease in financial markets.
Lecornu, a close ally of President Emmanuel Macron and former defense minister, was appointed after the abrupt exit of François Bayrou, who resigned on Tuesday following a failed confidence vote over contested budget plans. He becomes France’s fifth prime minister in less than two years, inheriting a minority government that has repeatedly struggled to push reforms through a fractured parliament.
The immediate challenge came from the grassroots “Let’s Block Everything” movement, which urged citizens to disrupt public life in protest against economic policies and political instability. Paris police reported 75 arrests by Wednesday morning as demonstrations spread across the capital, echoing anger from both left and right-wing groups demanding snap elections.
Financial markets, while relieved by the swift appointment, remain wary. France’s CAC 40 index rose 0.6% in early trading and government bond yields dipped slightly, but analysts warned that the relief may be short-lived. The country faces a budget deficit of 5.8% of GDP and public debt at 113% of GDP in 2024, both well above EU thresholds.
The new premier must now navigate a delicate balance — implementing fiscal consolidation demanded by investors while avoiding public backlash over spending cuts, pension reforms, and a higher retirement age. Strategists at Deutsche Bank noted that Lecornu’s task “will not become easier,” as political factions remain deeply divided.
Attention is now turning to Fitch Ratings, which will review France’s AA- credit rating on Friday. Analysts say the swift leadership change may delay a downgrade, but Fitch will likely wait for the government’s revised 2026 budget proposal before making a final call.
The formal handover of power from Bayrou to Lecornu took place midday Wednesday, but the new prime minister’s real test begins immediately — restoring credibility to Macron’s government and convincing both voters and markets that France can find a stable path forward.
