France Faces Political Uncertainty: Macron Battles Post-Election Hung Parliament

French President Emmanuel Macron has instructed Prime Minister Gabriel Attal to remain in his role temporarily amid challenging negotiations to form a new government after the New Popular Front's surprise success in recent elections. This political instability raises concerns about France's legislative capabilities and its impact on investment and the European Union.

French President Emmanuel Macron on Monday asked his prime minister, Gabriel Attal, to stay in the role temporarily, pending complex negotiations to establish a new government after the New Popular Front (NFP) unexpectedly surged in elections, resulting in a hung parliament.

The NFP emerged as the dominant force in the National Assembly, quelling Marine Le Pen's aims to bring the far right into power. However, no faction secured a working majority, forecasting political instability just before the Paris Olympics and spooking investors about the future of the euro zone's second-largest economy.

Prime Minister Attal tendered his resignation, but Macron rejected it, citing the need for stability. The fragmented parliament complicates pushing through a domestic agenda and could weaken France's influence within the European Union. The NFP has no single leader or clear strategy on collaborating with other parties, adding to the uncertainty.

(With inputs from agencies.)