Newly appointed French Prime Minister Sebastien Lecornu has decided to abandon his predecessor’s plan to cut two public holidays as part of an effort to address the national budget deficit. This decision follows a significant downgrade by the credit rating agency Fitch Ratings, which lowered France’s sovereign credit score to A+, marking the country’s lowest rating in history.
In an interview with local newspapers La Provence and Ouest France, Lecornu stated, “We are paying for the instability.” The downgrade adds pressure to his administration, which is still in its early stages as he attempts to form a cabinet and draft a budget for 2026 that can secure approval from a fragmented parliament.
Lecornu, who took office on September 10, 2023, is committed to exploring “creative ways” to collaborate with opposition parties to pass a budget aimed at reducing the national debt. He acknowledged the challenges ahead, asserting, “My mindset is simple: I want neither instability nor stagnation.” Lecornu emphasized that the upcoming budget may not entirely align with his beliefs, expressing a willingness to compromise.
In a time when political divisions are pronounced, Lecornu called for “modern, frank and high-level parliamentary discussions” with groups such as the Socialist Party, the Ecologists, and the Communist Party. His government has the daunting task of navigating through legislative hurdles, particularly since the previous two prime ministers faced similar struggles that ultimately led to their removal.
Emmanuel Macron appointed Lecornu, a conservative loyalist, to lead the government after the ouster of veteran centrist François Bayrou. This decision followed a confidence vote that revolved around a proposed budget cut of €44 billion (approximately $A78 billion). The political landscape has been tumultuous, with French debt levels rising and borrowing costs nearing those of Italy, which faces a lower credit rating despite carrying the eurozone’s second-highest debt burden.
Lecornu remarked on the implications of rising interest rates, stating, “When interest rates rise, they have a direct impact on the state’s finances, but also directly on the lives of households and businesses.” He underscored the necessity for the government to maintain a sound financial trajectory for France, framing it as a matter of national sovereignty.
As Lecornu works to stabilize both the government and the economy, his ability to forge alliances within a divided parliament will be crucial for his success. The coming weeks will reveal how effectively he can implement policies that address France’s financial challenges while maintaining political support.
