World Business Report Another collapse – can France cope?
Oct 6, 2025
France is grappling with political turmoil after the resignation of PM Sébastien Lecornu. Businesses express concerns over dwindling consumer confidence and the impact of political instability. Meanwhile, women in Afghanistan face severe rights restrictions under the Taliban. In Japan, markets are rallying with the election of the first female prime minister, signaling hopes for increased government spending. The discussion also touches on the economic challenges and potential policy shifts as global events unfold.
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Political Fragmentation Threatens Budget
- France has had four prime ministers fall since Macron's snap election, revealing deep political fragmentation.
- That fragmentation makes passing a coherent budget and stabilising policy extremely difficult.
Fashion Resale Benefits From Discount Demand
- Andrea Hergert describes her Paris fashion resale business profiting from brands' unsold stock during uncertainty.
- She says retailers urgently seek cash-flow and warehousing-cost reductions that boost demand for discounted inventory services.
Uncertainty Drives Precautionary Saving
- Economic uncertainty is driving French consumers toward precautionary saving and discounted purchases.
- This shift amplifies demand for second-hand and discounted goods while reducing full-price consumption.