France Faces Political Turmoil as Macron Seeks New Prime Minister

French President Emmanuel Macron is searching for a new prime minister following the ousting of Francois Bayrou due to his unpopular budget plans. As political instability looms, France braces for protests and awaits Fitch's rating decision. Market reactions remain subdued.

In a pivotal political shake-up, French President Emmanuel Macron is on the hunt for his fifth prime minister after Francois Bayrou's defeat amid opposition to his budget-tightening measures. This comes as Macron seeks to unify a fragmented parliament and address economic challenges.

With no set rules for choosing a successor, Macron faces pressure to lower France's deficit and debt, well beyond EU limits. Speculation centers on Defence Minister Sebastien Lecornu as a potential replacement, while Socialist Party calls for power amplify the political complexity.

The stakes are high as France prepares for social unrest, with 'Let's Block Everything' protests. The protests echo the historic 'Yellow Jacket' demonstrations, with businesses expressing concern over the impact on economic confidence and investment. Meanwhile, Fitch's impending sovereign rating decision adds further uncertainty.

(With inputs from agencies.)