A caretaker government in France will guarantee the functioning of the state while complex government formation talks take place, but the appointment of a political government that is able to implement necessary fiscal adjustment measures will remain elusive amid a fragmented parliament and deep political divisions, possibly leading to financial and sociopolitical instability in France over the coming months. French President Emmanuel Macron accepted the resignation of Prime Minister Gabriel Attal on July 16, but asked him to stay on as head of a caretaker administration while negotiations for the formation of a new government in the aftermath of France's June-July early parliamentary elections continue. Early parliamentary elections yielded a hung parliament with three blocs similar in size, none of which is close to an outright majority. The New Popular Front (NPF) coalition of left-wing parties controls 182 seats in the 577-seat National Assembly, ahead of Macron's centrist coalition Ensemble...
