Emmanuel Macron faces two-day race to save his job as popularity plunges to record low

Mr Lecornu stepped down after being unable to reach a compromise with France's fractured Parliament on how to push through the 2026 budget.

Budgetary issues also forced the resignation of his predecessor, former EU Brexit negotiator Michel Barnier.

Despite briefly postponing his troubles by persuading Mr Lecornu to stay on until Wednesday so a coalition government could pass the budget bill, Mr Macron is now facing huge pressure to either step down, or call snap elections.

The President and his centrist allies have not had a majority in government since July 2024.

As such, he now requires backing from the right-wing Republicans Party (LR) and the Socialist Party (PS) to pass any laws.

However, the PS has refused to support the Budget unless Mr Macron's pension reform is suspended.

The new pension legislation raised the retirement aged from 62 to 64, a move which sparked outrage across France.

Britain's state pension age rose to 66 in 2020 - without the kind of mass protests seen on the other side of the Channel.

Despite initially ruling out the possibility of his party rowing back on pension reform, Mr Macron's camp said on Tuesday night that it was being looked into.

With this key demand from the PS now a possibility, Mr Lecornu said on Wednesday morning that he believed the formation of a new government would happen.

He added: "The good news is that with all the consultations I have had, there is a desire to have a budget for France before December 31."

This will in turn "push back" the prospect of dissolution of Parliament.

Mr Macron's apparent U-turn has already proved costly among his supporters.

Yael Braun-Pivet, a Macron loyalist and parliamentary Speaker, declared her "embarrassment" at witnessing her side "give up on the major reforms we have made".

She demanded a "comprehensive" deal on the Budget instead of "giving things away like that, something every day".

New data from French pollsters Elabe has found that Mr Macron's popularity has reached a record low - level with that of hated former President Francois Hollande.

The President has seen his approval rating backslide by seven percentage points in two months - and 13 points since March.

Only 14 per cent of those surveyed have confidence in Mr Macron to effectively tackle the country's problems.

This undercuts his own previous record set just last month, and equals that of Mr Hollande, who reached 14 per cent in November 2016.

Elabe surveyed 1,001 French adults between October 7 and October 8.