Political instability in France may weaken EU

A government official from an eurozone country said “there are already many concerns around the eurozone economy”

The recent political uncertainty in France amid government reshuffle may weaken the European Union and aggravate the economic situation in the eurozone, Politico Europe said, citing sources.

“France is too big to fail, so this endless political instability puts the entire eurozone at risk. It is the main subject at all the water cooler conversations today,” an EU diplomat said. A government official from an eurozone country said “there are already many concerns around the eurozone economy.”

For their part, a number of diplomats in Brussels view French President Emmanuel Macron as a “lame duck leader” whose influence in the European Union “is fading fast.” They argue that it would be much easier to discuss the EU budget if France could “consistently send the same minister to meetings.”

On the other hand, an early election in France could imperil the bloc’s long-term budget which should be coordinated before the French election in 2027. Opposition parties that can come to power in France might derail the debate, the EU government official emphasized.

Besides, this political instability in France may ruin its joint projects with Germany and Britain, including the “coalition of the willing” initiative. According to the same eurozone official, “it’s not good for the EU if one of the biggest member states is in turmoil, especially in the current security situation.”

However, a number of French officials sought to downplay the risks in the wake of the resignation of French Prime Minister Sebastien Lecornu, as they insisted that there is still “a pilot in the cockpit,” despite the “complexity,” Politico wrote.

On Monday, Lecornu submitted his resignation to Macron amid criticism from the opposition following the announcement of the new government lineup, in which members of the previous cabinet got 13 out of the 18 mandates.

One of the most notable changes was the appointment of former Economy, Finance, and Industry Minister Bruno Le Maire, widely blamed for the country’s tough economic situation, as the defense minister.

Opposition leaders demanded that the government step down, with some going as far as calling for the dissolution of the parliament and Macron’s resignation.