While France has a long history of hefty overspending, economists say political turmoil – which has stalled policymaking – is bringing the country’s debt problem to a head.

French financial markets had mostly recovered from a political dustup earlier this week when Sebastien Lecornu stepped down as prime minister, before being reappointed late Friday.

France has been in the news lately for mounting political turmoil marked by Prime Minister Lecornu’s resignation, deepening budget battles, credit-rating warnings, and nationwide protests.

Within minutes of Prime Minister Sebastien Lecornu’s resignation, France has been hit with a major economic turmoil.On Monday, October 6, Reuters reported that the French PM stepped down from his position less than a month after

Arnault, who is worth $169 billion, said the tax would destroy the French economy and called the economist behind the tax a "far-left activist."

France’s economic growth was resilient in recent months despite heightened political uncertainty weighing on business leaders, the country’s central bank said.

France's economic activity is 12% lower than normal this month after the country entered a coronavirus lockdown for the second time this year, the central bank said on Monday.