Source: Sharecast
Sebastien Lecornu, an ally of under-pressure president Emmanuel Macron, submitted his resignation on Monday morning, just hours after he had named cabinet.
He had been prime minister for less than a month.
As at 0915 BST, the CAC 40 had tumbled 2%, while yields on 10-year government bonds rose, adding to the country’s borrowing costs.
The euro fell against the dollar, losing 0.7% at $1.1665.
The new cabinet was due to meet for the first time on Monday afternoon. However, allies across the political divide were disappointed with the line-up, and threatened to withdraw their support, prompting Lecornu’s shock departure.
Currently no one group holds a majority in France’s embattled parliament.
His resignation deepens the ongoing political crisis engulfing France, the Eurozone’s second-largest economy, and will heap yet more pressure on Macron.
The far-right National Rally immediately responded by demanding Macron call an election.
However, Macron’s decision last year to call a snap election compounded the turmoil after the vote returned an even more fragmented parliament.
