Macron's Search for Stability Amid Political Turmoil

President Emmanuel Macron is set to meet with France's major political parties on Friday, racing against a deadline to announce his new prime minister. The political crisis has prompted concerns from the central bank about its potential economic consequences.

Amid a hunt for his sixth prime minister in less than two years, Macron seeks a figure capable of bridging the political divide from center-right to center-left. This role is critical to navigate a budget through a divided parliament. Names like Jean-Louis Borloo, Pierre Moscovici, and former prime minister Sebastien Lecornu are being considered.

The country's deep political turmoil stems partly from Macron's failed electoral strategy, with the central bank predicting a 0.2 percentage point hit to GDP. The budget deficit remains a significant issue, with France's economic stability hanging in the balance as the country eyes a 2026 deficit threshold below 4.8% of GDP.

(With inputs from agencies.)