France's prime minister resigns after less than a month

(Sharecast News) - French markets fell sharply on Monday after France's new prime minister resigned, deepening the political turmoil engulfing the country. Sebastien Lecornu, an ally of under-pressure president Emmanuel Macron, submitted his resignation on Monday morning, just hours after he had named cabinet.

He had been prime minister for less than a month.

As at 0915 BST, the CAC 40 had tumbled 2%, while yields on 10-year government bonds rose, adding to the country's borrowing costs.

The euro fell against the dollar, losing 0.7% at $1.1665.

The new cabinet was due to meet for the first time on Monday afternoon. However, allies across the political divide were disappointed with the line-up, and threatened to withdraw their support, prompting Lecornu's shock departure.

Currently no one group holds a majority in France's embattled parliament.

His resignation deepens the ongoing political crisis engulfing France, the Eurozone's second-largest economy, and will heap yet more pressure on Macron.

The far-right National Rally immediately responded by demanding Macron call an election.

However, Macron's decision last year to call a snap election compounded the turmoil after the vote returned an even more fragmented parliament.