From Deficit to Downfall: Repercussions of the French Government Collapse

Following the fall of the French government on Monday, the “Bloquons tout” movement has called for a nationwide strike starting on September 10. We assess the political and economic repercussions of the turmoil in France. We also consider the prospects of its new prime minister, Sébastien Lecornu, the close ally appointed by President Macron who now faces the task of breaking the parliamentary deadlock over disputed budget plans. Failure to do so risks deepening instability in both French and European politics.