France’s political tensions return to the fore as Olympics end

Time is running out on the so-called “Olympic political truce” declared by French President Emmanuel Macron in late July, pushing the country’s rocky political landscape back into focus.

The snap legislative election called by Macron for early July — just before Paris hosted the world’s biggest sporting event — resulted in a hung parliament, with no party or alliance securing a majority. The left-wing New Popular Front alliance won the highest number of seats and prevented a much-discussed victory for the far-right National Rally.

For the past few weeks, however, the nation has been largely united by sporting spirit.

The usual stream of squabbling from politicians across the spectrum has dried up, and a “caretaker” government has remained nominally in place. The National Assembly’s next nine-month session is not due to begin until Oct. 1.

Macron is set to remain president until his term runs out in 2027, although much of his domestic political capital has been expended after his Renaissance party’s electoral battering.

One of the key questions back on the agenda now is who Macron will appoint as the new prime minister — who leads the French government, nominates ministers and instigates legislation — after the resignation of his ally Gabriel Attal.

Macron is keeping his cards close to his chest, and has not commented on Lucie Castets, the little-known candidate nominated for the role by New Popular Front after much debate.

While theoretically free to appoint anyone to the role, and with no obligation to choose a candidate from the party with the most seats, an unpopular choice could be ousted by a vote of no confidence in parliament. Macron cannot dissolve the National Assembly and call another election for another year.

Elsa Clara Massoc, assistant professor of International Political Economy at the University of St. Gallen, said the situation was “unprecedented” and looked to be a potential “dead-end” because of the extent of division in the new parliament.

“Under the previous legislature, Macron didn’t have an absolute majority but still more than the Left today and could count on the support of Conservatives to not endure a censor motion,” she told CNBC by email.

She highlighted issues including the fact that New Popular Front’s 178 seats are well short of the 289 needed for a majority and its candidate Castets is likely to be rejected by other parties.

Meanwhile, Macron’s own politics and allied government have been “widely rejected by the French,” Massoc added, and no party will form an alliance with far-right National Rally. Even within the leftist grouping, parties are divided and some will refuse any sort of alliance with centrists, she said.

One outcome could see the right-wing…