Political instability in France is posing a threat to the Eurozone, according to a report by Politico. France, as the second largest economy in the European Union, plays a significant role in the Eurozone and is a permanent member of the UN Security Council.
The report highlights recent developments following the resignation of French Minister Sébastien Lecornu, which led to a decline in French stocks and government bonds. The euro also weakened against the dollar, with the basic French CAC 40 index dropping by 1.4%.
A government official from another Eurozone country expressed concern about the current state of the Eurozone economy, stating, "We really don"t need this." Meanwhile, some EU diplomats are reportedly considering the political future of President Emmanuel Macron, who has been described as a "lame duck" with diminishing influence in Brussels since taking office in 2017.
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