The French prime minister announced his resignation, causing a huge market shock due to political turmoil
2025-10-06 07:58:30
French Prime Minister Nicolas Le Corny announced his resignation on Monday morning, a day after President Emmanuel Macron appointed a new cabinet that has been widely criticized. French government bonds fell and the yield on 10-year bonds rose 9 basis points to 3.6%, widening the spread between French and German bonds - a key measure of fiscal risk - to more than 89 basis points, the highest level since the end of 2024. France's CAC 40 index fell nearly 2%. Macron's new cabinet announced on Sunday was largely unchanged, triggering an immediate backlash from the opposition and parts of the ruling coalition. Olivier Faure, leader of the French Socialist Party, said the Macron camp was "collapsing" and the new government had lost its legitimacy. Faure, whose party holds a potential swing vote in parliament, said shortly before Mr. Le Corny announced his resignation: "We are witnessing an unprecedented political crisis."
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