2LT International News

France’s new government seeks to calm markets, end chaos

Oct 16, 2025

PARIS, France: France’s newly reappointed Prime Minister Sébastien Lecornu unveiled his new government on October 12, facing urgent pressure to deliver a workable budget and restore political stability after months of turmoil that have unnerved investors and tarnished France’s international image.

The new Cabinet features a mix of familiar figures from President Emmanuel Macron’s centrist camp, allied conservatives, and a few outsiders from beyond politics. But with Macron’s term ending in 2027 and no clear parliamentary majority, the government’s stability remains uncertain. Macron’s support base is shrinking, while Marine Le Pen’s far-right National Rally is demanding new elections and the far-left France Unbowed is calling for the president’s resignation.

Almost immediately after the lineup was announced, France’s conservative Republicans party expelled six members who agreed to join Lecornu’s Cabinet — a move highlighting the country’s deepening political fractures.

Lecornu, 39, a close ally of Macron and a centrist by background, must now negotiate carefully to avoid an early vote of no confidence in a bitterly divided National Assembly. His challenge is to unite far-right, left-wing, and centrist blocs long at odds over key policies.

Among the new appointments, former labor minister Catherine Vautrin takes over as defense minister, tasked with overseeing France’s military backing for Ukraine and addressing broader European security threats from Russia. Paris police chief Laurent Nuñez, who managed security during the 2024 Olympics, becomes interior minister, responsible for national policing and public order. Roland Lescure is named finance minister, a critical role as France struggles with rising debt, inflation, and social unrest.

Some figures remain in place, including Foreign Minister Jean-Noël Barrot, who accompanied Macron to Egypt for an international ceremony marking the Gaza ceasefire.

Lecornu is France’s fourth prime minister in just a year, underscoring the fragility of Macron’s leadership. He had formed a government only a week earlier but resigned within hours following protests from a conservative coalition partner, triggering days of uncertainty. Macron persuaded him to stay on, reappointing him on October 10. Lecornu later admitted that few others wanted the job — and that his tenure could be short-lived given the deep political rifts.

He may also be forced to reconsider Macron’s controversial pension reform, a flagship policy that raised the retirement age from 62 to 64 and sparked massive protests. Opposition parties are demanding its repeal.

Macron’s decision last year to dissolve the National Assembly has left France with a hung parliament and legislative paralysis, complicating efforts to manage the debt crisis and calm financial markets already rattled by the country’s political instability.