The fiscal and political mess roiling France just got messier: Its fourth prime minister in the past year resigned Monday morning. Why it matters: The situation plaguing Europe's second-largest economy is seen as a global warning of the political and economic chaos that can ensue in a new era that demands fiscal restraint.

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.

France’s political crisis is fuelling economic and market uncertainty, with risks to growth and compliance with EU borrowing rules. Bond spreads have widened, reforms are stalled, and analysts warn the ECB may need to act if the situation continues to deteriorate.

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

France must overcome its political impasse to tackle a debt burden that risks suffocating the economy, the head of the country’s central bank said.

France, whose public finances have become unsustainable and whose politics have become dysfunctional, could pose an existential threat to the euro.

Morocco and France are capable of launching fruitful dynamics underpinned by strategic alliances, said Arnaud Montebourg, former French Minister of Economy, Industrial Renewal, and Digital Affairs, on Tuesday in Casablanca.

Political turmoil in France over budget, benefits exposes contrasts in work culture and employee productivity between Europe, China and US.

Mr Lecornu – the fifth prime minister in two years – was tasked with passing a restrained budget and bringing a sense of stability back to France’s politics. Instead, he leaves the country in chaos.

Any plans to modify France's pension reforms - whose unpopularity is one of the reasons behind the country's political crisis - would be very costly for the economy, said acting French finance minister Roland Lescure on Wednesday.