Following Sunday's National Assembly runoff, where no single political force secured a majority, French leftist parties are actively exploring coalition options to form a government amidst a divided parliament.

The New Popular Front (NFP) alliance, comprising a coalition of Greens, Socialists, Communists, and the hard-left France Unbowed (LFI), emerged with the largest bloc of seats, totaling 193 out of 577 in the National Assembly. Despite this plurality, they fall short of the 289-seat threshold needed for a majority.

As newly elected parliamentarians visited the National Assembly in preparation for the July 18 session, discussions within the NFP alliance centered on nominating a prime minister.

Who are the candidates?

Olivier Faure, leader of the Socialist party and a moderate within the coalition, expressed his readiness to accept the role and stressed the importance of dialogue among coalition members.

"Faure alone has the profile to reassure and be prime minister," Pierre Jouvet, Secretary-General of the Socialist party, confidently said.

This stance was seen as an invitation to France Unbowed to support Faure's candidacy rather than their own polarizing leader, Jean-Luc Melenchon.

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Within France Unbowed, there is consideration for Clemence Guette, a 33-year-old deputy, as a potential alternative candidate.

Mathilde Panot, a prominent figure in France Unbowed, indicated that the NFP aims to nominate a prime minister by the week's end, navigating the requirement for the nominee to survive a confidence vote in parliament.

Is Macron stuck now?

Meanwhile, President Emmanuel Macron's party, despite securing 164 seats, is exploring coalition possibilities with center-left Socialists and conservative Republicans to potentially form a centrist-dominated government.

Macron's camp, wary of LFI's policies that diverge on EU support and economic policies, says it is seeking partners aligned with these principles.

On Monday, Macron asked Prime Minister Gabriel Attal to remain in his position temporarily to ensure stability amidst a hung parliament and ongoing negotiations for a new government.

Attal initially resigned on Monday morning after Macron's coalition suffered significant losses. However, Macron asked him to continue in a caretaker role to oversee governance until a stable government can be formed, citing the upcoming Paris Olympics and the need to reassure international stakeholders and financial markets.

Financial markets are closely monitoring developments, with rating agencies cautioning potential fiscal impacts based on future government policies, especially concerning Macron's pension reforms.

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