Outgoing French PM Lecornu Reports Progress Toward Year-End Budget Deal, Snap Election Unlikely

France's outgoing Prime Minister Sébastien Lecornu expressed cautious optimism about reaching a budget agreement by the end of 2025, which could reduce the likelihood of a snap election amid the country's worst political crisis in decades. Lecornu, who resigned after the failure of his new cabinet to gain support, is negotiating with various parties, including the center-right and left-wing factions, to form a coalition government and stabilize the political situation. President Emmanuel Macron has remained mostly silent but is open to last-minute solutions to avoid dissolving parliament again after recent early elections resulted in a highly fragmented National Assembly. Analysts suggest that while short-term budget approval is crucial, suspending key reforms like the pension overhaul could increase France's long-term debt sustainability challenges. Meanwhile, the political deadlock and ongoing instability are seen as opportunities for far-right factions, notably Marine Le Pen's National Rally, which is gaining in the polls, raising concerns about the future of mainstream French politics. Macron's handling of the crisis, including his pressure on successive prime ministers to propose unpopular austerity measures without a clear mandate, is criticized for contributing to the current turmoil.