French President Emmanuel Macron rejected the resignation of Prime Minister Gabriel Attal Monday, in the wake of a chaotic election result that left neither left, right, nor center with a majority in the National Assembly.
A broad left-leaning coalition, the New Popular Front, took the most seats in Sundayās runoff but fell short of a majority.
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It surged ahead of the far-right National Rally, which placed third behind Macron's centrist party. Voter turnout was high.
The outcome leaves France facing the stunning prospect of a hung parliament and threatens political paralysis in a pillar of the European Union and Olympic host country.
The far right drastically increased the number of seats it holds in parliament but fell far short of expectations.
What happens next in this nuclear-armed nation has potential to impact the war in Ukraine, global diplomacy and Europeās economic stability.
Currently:
ā With French voters split between left, center and right, political paralysis threatens.
ā Global markets are mixed as France faces weeks of uncertainty.
ā Here's a guide to how French elections work and what could happen next.
ā How Marcon went from successful political newcomer to weakened leader.
Hereās the latest:
UK says it will work with any French government regardless of affiliation
British Prime Minister Keir Starmer is prepared to work with the French leadership regardless of political affiliation, a spokesperson said.
āFrance is obviously one of the U.K.ās closest partners. As Nato and G7 members, we have many shared interests,ā a spokesperson said. āThe prime minister has said previously he will work with any government in Europe and across the world.ā
Markets take French election result in stride after no majority for either left or far-right
French markets are taking the results of Sundayās election in stride even though no political force won a majority and the country faces weeks of political uncertainty.
This comes as the scenario that had investors worried the most didnāt happen: a majority for either the left-wing New Popular Front or for the populist, anti-immigration National Rally of Marine Le Pen. Both have made expansive promises to increase social spending or in the National Rallyās case to cut taxes, steps that could have increased Franceās already large budget deficit and led to financial turmoil.
The CAC-40 index ā which includes the countryās biggest companies such as luxury goods makers LVMH and Hermes, cosmetics and personal care company LāOreal and oil major TotalEnergies. ārose 0.2% to 7,692.97.
A key index of financial market tension eased slightly as the spread, or difference, between yields on French government bonds and highly safe German government bonds shrank from .77 percentage point to .62 percentage point.
Analysts said that without a clear majority in parliament, France may nonetheless struggle to reduce its budget deficit swollen by consumer support spending during the energy crisis which began when Russia cut off most supplies of natural gas over the invasion of Ukraine.
Relief prevails in Germany, government spokesperson says
The government in Germany, which together with France has long been viewed as the engine of European integration, expressed relief Monday that the nationalist far right had not become the strongest party in its key partner country.
āFor now, a certain relief prevails that things that we feared have not materialized,ā a spokesperson for German Chancellor Olaf Scholz told reporters in Berlin. āOnly time will tell what happens with this election result and France will decide.ā
āThe German-French relationship is a very special one,ā Steffen Hebestreit added. āIt is certainly also the core for the fact that we are experiencing Europe in peace and freedom.ā
Macron's Cabinet arrives for post-election meeting
Members of French President Emmanuel Macronās Cabinet trickled into the presidential palace on Monday after chaotic election results left no political faction with a clear majority.
Among the arrivals late Monday morning were the prime minister named by Macron just seven months ago, and the interior minister.
Prime Minister Gabriel Attal has said he would offer his resignation Monday but said he would stay āas long as duty requires.ā His departure would leave France without a head of government less than three weeks before the start of the Paris Olympics.
Attal on Sunday made clear that he disagreed with Macronās decision to call the surprise elections. The results of two rounds of voting left no clear path to form a government for either the leftist coalition that came in first, Macronās centrist alliance, or the far right.