European markets started the week under pressure as fresh political uncertainty in France weighed on investor sentiment, while Chinese carmaker BYD continued its rapid ascent in the UK’s electric vehicle market. Ukraine appealed to allies for another round of winter defense funding.
France faces renewed political instability
France entered another period of political uncertainty on Monday after Prime Minister Sebastian Lecornu resigned just 27 days into his tenure.
Lecornu stepped down citing disagreements among coalition members, marking the fifth prime minister in less than two years under President Emmanuel Macron.
In a statement on X, Lecornu said he would lead “final negotiations” with parliamentary parties at Macron’s request to determine whether a new governing coalition could be formed.
He added that he would report back to the president by Wednesday evening on the prospects for political agreement.
The Elysee Palace confirmed that Macron had asked Lecornu to oversee these talks as part of a last attempt to restore political stability and create a unified platform for governance.
However, the abrupt resignation underscored deep divisions within French politics and raised fresh concerns among investors.
The turbulence also claimed another casualty when Bruno Le Maire, who had been appointed Armed Forces and Veterans Affairs Minister just a day earlier, offered his resignation.
Le Maire said his decision to step aside was meant to prevent “incomprehensible and disproportionate reactions” from hindering the government’s functioning.
Markets react to political upheaval
European financial markets reacted sharply to the French developments.
The CAC 40 index in Paris fell 1.36% by the close, led by steep declines in major lenders such as Société Générale, which dropped 4.23%.
French government bond yields also rose, reflecting heightened investor anxiety.
The broader EURO STOXX 50 slipped 0.36%, while Germany’s DAX finished flat and London’s FTSE 100 edged down 0.15%.
In currency markets, the euro weakened by 0.30%, trading at $1.17055, as investors digested the implications of renewed political uncertainty in one of the eurozone’s largest economies.
Market analysts noted that Macron’s inability to maintain a stable government could complicate France’s fiscal planning and influence broader EU economic sentiment.
The continued reshuffling in Paris has led investors to question the durability of France’s reform agenda and its capacity to maintain fiscal discipline amid rising public spending pressures.
Ukraine appeals for winter defense funding
Amid Europe’s domestic challenges, Ukrainian President Volodymyr Zelensky appealed to Western allies for a second round of funding for winter air-defense systems.
Writing on X, Zelensky emphasized that Ukraine’s survival through the winter “depends first and foremost on air defense missiles,” thanking countries including the Netherlands, Germany, Canada, Sweden, Denmark, and Norway for their ongoing support.
The funding is being coordinated through the PURL initiative, a US-based mechanism that enables allied nations to finance weapons purchases for Ukraine.
Kyiv is racing to strengthen its defenses ahead of expected Russian attacks targeting its energy infrastructure during the colder months.
BYD leads UK’s EV market growth
In contrast to Europe’s political turbulence, the automotive sector saw a bright spot.
Chinese electric vehicle maker BYD reported an 880% year-on-year surge in UK sales last month, selling 11,271 cars in September and surpassing 35,000 units sold in 2025 so far.
BYD’s success makes the UK its largest market outside China, giving the company a 2.2% share of the UK’s EV market.
Its growth has been fueled by competitive pricing, with the popular Dolphin model priced at just over £26,000, significantly below rivals like Tesla’s Model 3.
The company has also expanded its local footprint, opening a battery facility to support electric bus production.
This aligns with Britain’s broader push toward green transportation and sustainability.
While the UK government’s reintroduced electric car grant excluded Chinese automakers, BYD’s growth highlights consumer appetite for affordable EV options.
Despite facing challenges in its domestic Chinese market, BYD’s European momentum underscores its growing global influence in the electric vehicle space.
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