(BFM Stock Exchange) – The motto of the euro zone suffers against the dollar this Monday, October 6, after the resignation of Prime Minister Sébastien Lecornu.

The euro unscrews this Monday. The European currency suffers after the announcement of the resignation of the French Prime Minister Sébastien Lecornu, who strengthens the political crisis in France and fuels the risk of deteriorating the country’s note on the bond market.

Around 12:05 p.m. in Paris, the single currency lost 0.70% against the dollar, at 1.1662 dollars for one euro.

The tenant of Matignon, appointed on September 9, who was to hold his first council of ministers at the head of the government later on Monday, went to the early hours of the morning to the Élysée to resign to President Emmanuel Macron, who accepted him, according to a statement from the Elysée.

A “fracture” that worries

This resignation plunges France into an unprecedented political crisis for decades.

This departure “clearly shows how the fracture within the Parliament makes it almost impossible to adopt a budget aimed at reducing the deficit,” said Jack Allen-Reynolds, Economics Capital Analyst.

“If we still had questions about the degradation of the French note by rating agencies, now we have no doubts,” said John Plassard, Cité Management Private Bank.

The risk that weighs on France is to have to borrow from even higher rates. “The lack of confidence” of investors also weighs on the economic prospects of France, added John Plassard.

“This certainly makes people suspicious of European assets at present, because of the uncertainty and the repercussions which arise from the inability of France to get out of this crisis,” Chris Beauchamp, chief market analyst at Ig Group, told Reuters.

(With AFP)