October 8, 2025

Tensions are likely to be high in Brussels this week, as yet another political implosion in France leaves the country’s much-needed fiscal consolidation hanging in the balance.

The euro zone’s second-largest economy has repeatedly broken European Commission rules on budget deficits and debt limits, and successive prime ministers who have tried to fix the problem with proposed reforms, spending cuts and tax rises have been repeatedly ousted.

The latest martyr in Paris’ ongoing political deadlock — France’s fifth PM in less than two years — is Sébastien Lecornu, who announced his resignation on Monday after just 27 days in office.

Read more:

https://www.cnbc.com/2025/10/08/nerves-jangle-in-europe-as-france-heads-into-another-political-crisis.html