France's new Prime Minister Sebastien Lecornu has resigned, just hours after appointing his new cabinet, after allies and foes alike threatened to topple his government.

His resignation after only two weeks in office was unexpected and unprecedented and marked another major deepening of France's political crisis.

French stocks dropped sharply, as did the euro, on news of the resignation.

After weeks of consultations with political parties across the board, Lecornu, a close ally of President Emmanuel Macron, on Sunday appointed his ministers, and the cabinet had been set to hold its first meeting on Monday afternoon.

But the new cabinet line-up had angered opponents and allies alike, who either found it too right wing or not enough, raising questions on how long it could last, at a time

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