Macron is set to appoint new French prime minister in last-ditch move to tackle turmoil
Paris (AP): After a week of intense political turmoil, French President Emmanuel Macron is set to appoint a new prime minister on Friday in his latest bid to break the political deadlock that has gripped the country for more than a year, as France struggles with mounting economic challenges and ballooning debt.
The appointment is widely seen as the president's last chance to revive his second term, which runs until 2027. With no majority in the National Assembly to push through his agenda, Macron faces increasingly fierce criticism, even from within his own camp, and has little room to manoeuvre.
Outgoing Prime Minister Sebastien Lecornu abruptly resigned on Monday, only hours after unveiling a new Cabinet. The shock resignation prompted calls for Macron to step down or dissolve parliament again. But they remained unanswered, with the president instead announcing on Wednesday that he would name a successor within 48 hours.
Over the past year, Macron's successive minority governments have collapsed in quick succession, leaving the European Union's second-largest economy mired in political paralysis as France is faced with a debt crisis. At the end of the first quarter of 2025, France's public debt stood at 3.346 trillion euros (USD 3.9 trillion), or 114 per cent of gross domestic product.
France's poverty rate also reached 15.4 per cent in 2023, its highest level since records began in 1996, according to the latest data available from the national statistics institute.
The economic and political struggles are worrying financial markets, ratings agencies and the European Commission, which has been pushing France to comply with EU rules limiting debt.
Uncertainty surrounds the choice of the next PM
Macron may turn to a figure from the left, who managed to form a coalition in the 2024 legislative elections, or opt for a technocratic government to sidestep partisan deadlock.
In any case, the new prime minister will have to seek compromises to avoid an immediate vote of no confidence and may even be forced to abandon the pension reform that gradually raises the retirement age from 62 to 64. Macron fought fiercely for the deeply unpopular measure, which was enacted into law in 2023 despite mass protests.
Lecornu argued that Macron's centrist bloc, its allies, and parts of the opposition could still rally to form a working majority. “There's a majority that can govern,” he said. “I feel that a path is still possible. It is difficult.”
The stalemate stems from Macron's shock decision in June 2024 to dissolve the National Assembly. The snap elections produced a hung parliament, with no bloc able to command a majority in the 577-seat chamber. The gridlock has unnerved investors, infuriated voters, and stalled efforts to curb France's spiralling deficit and public debt.
Without stable support, Macron's governments have stumbled from one crisis to the next, collapsing as they sought backing for unpopular spending cuts. Lecornu's resignation, just 14 hours after announcing his Cabinet, underscored the fragility of the president's coalition amid deep political and personal rivalries.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
RBI does not target any band for rupee, allows it to find its own level: Guv Malhotra
Mumbai (PTI): Reserve Bank Governor Sanjay Malhotra on Friday said the central bank does not target any band for the rupee in the forex market, and allows the domestic currency to find its own correct level.
The governor's statement came at a time when the rupee breached the 90-mark against the US dollar, and is hovering near that level.
"We don't target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It's a very deep market," he said while replying to a question on rupee depreciation at a post-monetary policy press meet.
Malhotra said fluctuations in the market keep taking place, and the effort of the RBI is always to reduce any abnormal or excessive volatility.
"And that is what we will continue to endeavour," he added.
In its bi-monthly monetary policy, the RBI announced three-year USD/INR Buy Sell swaps of USD 5 billion this month.
When asked if the USD-INR swap is aimed at checking rupee depreciation, Malhotra said, "It is a liquidity measure. It is not to support the rupee".
Stressing that RBI does not target any level of rupee against the US dollar, he said the central bank allows "the rupee find its correct position, correct level".
The governor further said the country has sufficient foreign exchange reserves and the current account is manageable, and given the strong fundamentals of the economy, the country should witness good capital flows going forward.
Foreign portfolio investment (FPI) to India recorded a net outflow of USD 0.7 billion in 2025-26, so far (April-December 03), due to unabated withdrawal from the equity segment.
Flows under external commercial borrowings and non-resident deposit accounts moderated compared to the last year.
As of November 28, 2025, India's foreign exchange reserves stood at USD 686.2 billion, providing a robust import cover of more than 11 months.
The governor further said that, having reduced the policy rate (repo) by 25 basis points, the focus will now be on transmission of the rate cut to the real economy.
According to the RBI's November bulletin, the depreciation of the rupee in October was due to a stronger dollar, following the US Fed's policy announcement to lower the Federal funds rate.
Nevertheless, strong fundamentals, such as stable inflation, a resilient growth outlook for the Indian economy, a narrower current account deficit, steady services exports, robust private remittances, and robust foreign exchange reserves, have contributed to the rupee being the least volatile among emerging market and developing economies.
The rupee has performed better than the Euro, and its depreciation has been in line with that of other currencies, such as the Japanese Yen and the Korean Won (for April to November 2025-26).
The central bank has announced various measures over the last 3 years to diversify and expand the sources of foreign exchange funding, aiming to mitigate exchange rate volatility and dampen global spillovers.
The RBI bi-monthly policy in October had announced some measures to enhance the use of the rupee in international trade.
