San Francisco Frontiers - French PM faces parliament in political crisis

France, the eurozone's second-largest economy, is in a political crisis that has spooked markets and raised concern about its minority government's ability to govern and pass measures to ease the country's debt burden.

After a week of drama that saw Lecornu resign only to be re-appointed days later, the 39-year-old prime minister has urged his new cabinet to do everything to help France overcome the deadlock and pass an austerity budget by the end of the year.

On Tuesday, his new government approved a draft budget in a meeting with President Emmanuel Macron, who warned that any vote to topple Lecornu's cabinet would force him to dissolve parliament and call fresh elections.

Macron, who has returned from a summit in Egypt on ending the Gaza war, warned during the meeting that any no-confidence motion would be tantamount to a "dissolution motion", government spokeswoman Maud Bregeon said.

All eyes will be on the premier from 1300 GMT when he gives his policy speech in parliament, especially to see if he will suspend a deeply unpopular pensions reform.

The hard-left France Unbowed party and far-right National Rally have already filed motions to topple Lecornu's new cabinet.

The Socialists have said they will not back those motions, giving them little chance of succeeding, but will file their own if Lecornu does not immediately suspend a reform that raised the retirement age from 62 to 64.

The reform, which the government forced through parliament without a vote in 2023, sparked months of angry protests.

The winner of this year's Nobel Prize in economics and a former Macron advisor, Philippe Aghion, said Tuesday he thought suspending the reform would avert the "danger" of the far right taking power in the case of new parliamentary elections.

- 'Putting egos aside' -

Lecornu's two immediate predecessors were ousted in a standoff over an austerity budget, and his immediate task is to persuade parliament to approve his 2026 budget plan.

His new cabinet is due to present its budget plan to parliament on Tuesday under a constitutional deadline.

Lecornu, the seventh prime minister of Macron's mandate, told the cabinet on Monday he was counting on them to "show the utmost restraint and humility".

"Service is something that requires putting egos aside," said Lecornu.

In a bid to gain opposition backing, Lecornu earlier this month promised not to force laws through parliament, and instead allow all bills to be debated in the lower house.

Macron has come under unprecedented pressure in recent days.

Some opposition leaders are urging him to call snap elections or resign, and even key allies such as former prime minister Edouard Philippe have distanced themselves from the 47-year-old president.

France has been locked in political deadlock ever since Macron gambled on snap elections in the summer last year.

He had hoped the polls would consolidate his power, but they instead ended up in a hung parliament, with the National Rally gaining ground and becoming the chamber's single largest party.

The far right senses its strongest chance yet to seize power in the 2027 presidential elections, when Macron's second and last term runs out.

France's debt-to-GDP ratio is the European Union's third-highest after Greece and Italy, and is close to twice the 60-percent limit fixed by EU rules.

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H.King--SFF