French President Emmanuel Macron’s snap election decision has sparked concerns among investors about France's financial instability. The far-right National Rally's strong showing in recent elections has further fueled uncertainty, leading to a 6 percent drop in the CAC 40 stock market and a sell-off of French government bonds. With Macron's centrist coalition losing support, extreme left and right-wing parties are poised to shape the new government, both advocating costly programs despite a large budget deficit. Standard & Poor’s cut France’s credit rating due to widening deficits, with Macron aiming to bring it back in line by 2027. If left unchecked, spending plans could lead to a debt crisis, potentially requiring IMF intervention. Investors are demanding higher returns on French bonds, with markets likely to remain volatile until the conclusion of elections in July. Despite concerns, the ECB is prepared to intervene if necessary, ensuring stability in the event of a financial crisis.