PARIS, October 7. /TASS/. Political instability in France could negatively affect the country’s economic growth, resulting in losses of around €15 billion by the end of 2025, AFP reported, citing the France-based OFCE economic think tank.

According to the center, the political crisis that began in June 2024 after President Emmanuel Macron dissolved the National Assembly and that continues amid ongoing government reshuffles will lead to a 0.5% decline in France’s economic growth in 2025.

OFCE economist Eric Heyer explained that during periods of uncertainty, "companies suspend investment projects and are reluctant to hire new employees, while citizens prefer to save money." However, he noted that it remains difficult to precisely assess the full economic impact of the political crisis, as it affects various sectors of public life.

The turmoil has reportedly already contributed to a decline in France’s financial markets and could further increase the country’s public debt, which currently stands at €3.4 trillion. As a result, the National Institute of Statistics and Economic Studies (INSEE) expects France’s economic growth to reach only 0.8% in 2025.

On October 6, Prime Minister Sebastien Lecornu submitted his resignation to President Macron amid opposition criticism following the announcement of a new government lineup, which retained 13 of the 18 ministers from the previous cabinet.

On Monday evening, the Elysee Palace said Macron had instructed Lecornu to hold new consultations with all political forces by Wednesday "to define a framework for action and for the stability of the country." If those talks fail, Macron pledged to "take responsibility" for further decisions, according to media reports citing sources close to the French leader.