“France is too big to fail, so this endless political instability puts the entire eurozone at risk,” said one diplomat from an EU country, who like others in this article was granted anonymity to comment on another country’s domestic situation. “It is the main subject at all the water cooler conversations today.”

With good reason. France is the European Union’s second-biggest economy, a leading player in the G7, the EU’s only nuclear power, and a permanent member of the U.N. Security Council. Just as significantly, under Macron it has been a political force driving EU affairs rivaled only by the might of Germany.

At the same time, Macron has been trying to fend off the threat of the far-right National Rally, which consistently leads in opinion polls, while tackling France’s large budget deficit.

But his governments have been unable to pass measures to rein in public spending through parliament. A prolonged political stalemate increasingly raises the likelihood of new legislative elections before the end of the year, bringing additional months of uncertainty.

Some observers are now even contemplating Macron’s early resignation as president. His term is due to end in 2027.

Each of these outcomes would open the door for Marine Le Pen’s far-right National Rally party to make major gains, potentially upending European politics and unleashing a wave of instability. Chief among the concerns raised by EU diplomats and officials in national capitals was the risk to the eurozone.

The leader of the far-right National Rally party in France, Marine Le Pen, declared today that she would block any possible action if a new government is formed, again demanding early elections.

"I will oppose everything. Enough of this farce. Enough: the government is bypassing the institutions, disdaining the Fifth Republic and treating the French people like fools. It is time to sound the alarm and end this disruption," she said in harsh tones.

Meanwhile, a meeting was held at the Matignon Palace (the office of the Prime Minister of France) between the outgoing Prime Minister, Sebastien Lecornu, and the leaders of the Socialist Party. The meeting did not bring any significant developments or concrete results.Socialist Secretary Olivier Faure told the media after the meeting that "there is no guarantee" of a review of the pension reform, an issue that the Socialists consider of great importance. He reiterated his party's desire to form a left-wing government that would have involvement in drafting the state budget for 2026.

In a completely opposite line, the leader of the Republican party and outgoing Interior Minister, Bruno Retailleau, declared that his party will not accept any changes to the pension reform, implying that this is a red line for the right.

The support of both parties, the Socialists and the Republicans, is essential for the formation of a stable government in France.

As for the parties not participating in these talks, such as Marine Le Pen and Jean-Luc Melenchon, both have made it clear that they will present no-confidence motions against any government that is formed. Meanwhile, Melenchon's party, "France Insubordinate," has submitted a request to remove President Macron from office, but this was rejected by the presidium of the French National Assembly.

​​Lecornu resigned on Monday, just 14 hours after naming his Cabinet, which had met resistance from rival political parties.

On Wednesday, it was announced that Macron would reveal his choice for the new prime minister within 48 hours, though no indication was given as to who that might be.

France has been in a state of political turmoil since a snap election in mid-2024, which left no camp with a majority. Macron called the election soon after his party performed poorly in European elections in a surprise move, losing many seats to the far right in the process
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