France's ongoing hung parliament and fiscal pressures continue to shape trader views on whether President Macron will dissolve the National Assembly before year-end. A fragile minority government under Prime Minister Sébastien Lecornu faces repeated no-confidence threats from both the National Rally and La France Insoumise, yet recent negotiations have enabled passage of the long-delayed 2026 budget, which analysts say reduces immediate dissolution incentives. Macron has prioritized completing the EU multiannual financial framework talks by December to avoid complications ahead of the April-May 2027 presidential vote, where Marine Le Pen leads polls. Any renewed parliamentary deadlock or coalition breakdown could still prompt a snap legislative election, though current momentum points toward stability through the remainder of 2026.
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