One thing was clear after France’s surprise election results on Sunday: Any new government formed by President Emmanuel Macron would face months of political paralysis.
What’s less certain is whether that gridlock will tip France’s heavily indebted economy further into distress.
“Uncertainty hangs over France’s future government architecture,” said the agency, which had already downgraded France’s debt rating on May 31, rattling the government, whose economic credibility has been one of its main political assets.
Should the polarization of France’s new Parliament weaken the government’s ability to mend its finances, France’s debt could be downgraded again, it added.
The result left no party — including Mr. Macron’s centrist coalition — with a majority and has splintered the lower house of Parliament into three bitterly antagonistic blocs.
Persons:
Emmanuel Macron, ”
Organizations:
Rally
Locations:
France