The French Prime Minister, Sébastien Licorne, resigned along with his government on Monday, just under 12 hours after announcing the formation of the new cabinet, marking yet another chapter in the ongoing governance crisis that has afflicted France since the early elections of 2024.
Licorne, at the age of 39 and a former defense minister closely allied with President Emmanuel Macron, is the fifth Prime Minister appointed since Macron’s re-election in 2022, and the third to leave office following the parliamentary dissolution in the summer of 2024.
Having taken office just 27 days ago, Licorne officially announced his government formation only yesterday. However, a mere 12 hours later, he submitted his resignation, surprising political and economic circles and ushering France into a new phase of political turmoil, making his term the shortest in the modern history of the nation.
Licorne attributed his resignation to political stalemate and party intransigence, stating: “I was ready to compromise, but each party wanted the others to fully adopt their agenda… partisan stances and a degree of arrogance rendered success impossible.”
Immediate Market Reactions
The announcement of his resignation caused concerns in the financial markets, leading to a 2% drop in the CAC 40 stock index, while the euro decreased by 0.7% against the dollar. France is already grappling with a significant financial burden, with its public debt at approximately 110% of GDP, one of the highest ratios in the EU after Greece and Italy, accompanied by a budget deficit estimated at 6%.
What Triggered the Crisis
The roots of the current crisis can be traced back to the early legislative elections of 2024, which resulted in a parliament divided into three nearly equal blocs: the left, the far right, and a centrist coalition led by Macron. This division has made governance impossible without broad consensus.
The situation is further complicated as the 2027 presidential elections approach, with Macron unable to run again, while major parties are seeking to strengthen their positions in preparation for the upcoming contest, according to the British newspaper “The Guardian.”
Licorne faced an almost insurmountable challenge in passing an austerity budget aimed at reducing the fiscal deficit, the same plan that led to the downfall of his predecessors, François Bayrou and Michel Barnier, due to parliamentary opposition.
Observers note that the reaction from the Republicans (LR) party may have been the breaking point for the government, as they criticized the new cabinet and labeled it a continuation of Macron’s policies rather than the promised “break” from his administration.
The new government structure faced backlash from across the political spectrum: the right considered it “not right-wing enough,” while the left accused it of favoring business interests. Furthermore, the appointment of Bruno Le Maire – the former economy minister – as defense minister sparked widespread outrage, seen as a signal that Macron’s economic policies remain untouchable.
What Comes Next
Licorne’s resignation has presented President Macron with three challenging and risky options:
Appointing a new Prime Minister, which would likely incite objections: allies from his camp may lack legitimacy, the left would oppose social reforms, while the right would demand drastic changes.
Analysts suggest Macron might consider appointing a neutral technocratic figure to help pass the budget and avoid direct confrontation.
Dissolving the National Assembly and calling for new elections, a highly uncertain choice; polls indicate that fresh elections could reinforce the current divisions and possibly lead to greater gains for the far-right, led by Marine Le Pen.
Resigning himself, a highly unlikely choice, has been repeatedly dismissed by Macron, who has assured his commitment to serving until the end of his term in 2027, a pivotal election widely seen as crucial for the future of French politics, particularly with Le Pen nearing a historic opportunity to gain power.
In summary, Licorne’s resignation illustrates that the French political crisis has transcended individual figures to encompass the systemic structure itself, characterized by a divided parliament, a struggling economy, and waning public trust, placing France in an unprecedented governance dilemma within the Fifth Republic.