The resigned prime minister of France Sebastian During his speech this morning by the Prime Ministerial Palace explained that graduationhe was in a waiver since he found that “the conditions for the formation of a government are not met”.

‘I tried for three weeks to achieve them necessary compromisesspeaking both with politiciansas well as with social partners‘ The resigned prime minister said, explaining that the first objective was to agree on a state budget for 2026, knowing that there was no parliamentary majority.

Sebastian Lekorni explained the achievement compromise were impossible because of the rigidity of the country’s political agents. He characteristically said that Members refused to be Members voting lawswhile political parties, obviously having their minds on presidential election of 2027, they behaved as if each one had the absolute parliamentary majority alone, making impossible to achieve compromise.

Sebastian Lekorni announced today’s decision to resign after an hour’s consultation with the country’s president in the morning Emmanuel MacronThey also say French media. As for the first political reactions, the leader of the Radical Left Party, “Unbearable France”, Lyk Melanson requested Macron’s resignation.

Otherwise, he thinks that the Procedures for the Discount of Emmanuel Macron by Presidency of the Republichowever, which are considered long -term and are not expected to give the expected effect by Melanson. From the far right, National Coalition President Jordan Bardela called on President Macron to call new parliamentary elections.

On the other hand, both the socialist and the Republican Party, whose leaders are meeting today, have left in recent days to be preparing for early parliamentary elections. The last reason on these issues, of course has him A French president whose position is expected to be of particular interest.

Euro recession, increase in borrowing costs after lecked

At the same time, the euro has fallen after the announcement of the resignation of Lekorni that exacerbates the political crisis in France and enhances the risk of downgrading the country’s debt to the bond market.

About 11.05 local time, the euro was receding by 0.63% against the dollar at $ 1,1688.

This resignation “clearly shows where the fragmentation of parliament makes it almost impossible to adopt a budget aimed at reducing the deficit,” says Jack Allen-Reynolds, an analyst of Capital Economics.

“If we still had doubts about the downgrading of the French rating from the ratings, we have no doubt anymore,” said John Plassard, an analyst of Cité Gestion Private Bank.

At the same time, the announcement of the resignation of Lekorni caused the increase in French lending rates and mechanically increased the spread. Immediately after the announcement of the resignation, the 10 -year bond rate rose to 3.61% to then drop to 3.57%, increased by seven basis points compared to the latter closure.

“If the 3.60% threshold is overcome, French debt can be exposed to mass attacks, which will increase market nervousness”warns Antoine Andreani Director of Research at XTB France.

Immediately after the announcement of the resignation of Lekorni, the stock market index Paris dropped by 2% (at 09.00 local time) to recover what then.