Overview

• Prime Minister Sébastien Lecornu resigned on October 6, leaving a caretaker government and injecting fresh uncertainty into the budget timetable.
• French markets slid on the news, with the CAC 40 dropping sharply and bank shares slumping.
• Lenders raised risk premiums, pushing up France’s funding costs at Agence France Trésor and making consumer credit more expensive.
• Companies report freezing investments and delaying hires, from a PME cutting recruitment plans to small contractors shelving additions as order books thin.
• Employers’ group Medef scrapped a planned Bercy rally, as analysts warn each week without a clear political line will complicate adopting the budget.