French President Emmanuel Macron asked his outgoing Prime Minister, Sébastien Lecornu, to negotiate a way to stabilize the government in the next 48 hours.
Macron confided in Lecornu “the responsibility to carry out final negotiations before Wednesday night in order to define a platform for action and stability for the country”according to a statement issued by the president’s office.
Lecornu’s resignation sparked a massive sell-off of French assets, with stocks falling the most since late August and benchmark 10-year bond yields rising nine basis points to 3.6%.
Macron now has three main options: he can name a new prime minister, who could then propose a new cabinet; can call parliamentary elections; or it may decrease, something it has already said it will not do. The deadline to present the regular budget is next Monday, meaning the government will likely have to resort to emergency measures.
