French Prime Minister Gabriel Attal to Resign as Centrist Party Falls in Parliamentary Race

French Prime Minister Gabriel Attal has announced his resignation after early poll data showed his and French President Emmanuel Macron's centrist Ensemble party and its allies coming in second in the parliamentary runoff. Ensemble and its allies are projected to secure between 150 and 180 seats, according to an IFOP estimate, behind the leading New Popular Front's 180-215 result.

Stranded in a Hung-Parliament Scenario

With both factions outpacing the far-right Rassemblement National, France now looks likely to be stranded in a hung-parliament scenario that divides it between three strongly represented parties that must broker alliances to gain absolute control.

Resignation Announcement

Attal announced his resignation, stating, "Faithful to the Republican tradition and in accordance with my principles, tomorrow morning I will submit my resignation to the president of the Republic." He acknowledged the uncertainty felt by many French people about the future, given the lack of an absolute majority in parliament.

Attal highlighted the discarded risks of an absolute majority dominated by either France Unbowed or Rassemblement National, and the risk of the disappearance of a movement that embodies their ideas and values, stating, "These three risks, today, were discarded by the French people. Tonight, no absolute majority can be led by the extremes."

Attal set the scene for a period of transition for France's political landscape, indicating the beginning of a new era for the nation.

Market and Leadership Response

Faced with uncertainty in one of Europe's forefront economies, markets will be following the next few days for indications of what alliances will forge to achieve ruling majority. France's leadership is unlikely to be entirely dismantled in the wake of the elections, as Macron has previously indicated he would serve out the remainder of his term until 2027, irrespective of the outcome of the vote.