Analysis-Is France governable? The budget is an early test

Members of Parliament of the French far-left opposition party La France Insoumise (France Unbowed - LFI) and the alliance of left-wing parties, called the "Nouveau Front Populaire" (New Popular Front - NFP), pose as they arrive at the National Assembly in Paris after the second round of the early French parliamentary elections, France, July 9, 2024. REUTERS/Yara Nardi/ File Photo

(Reuters) - Just a couple of weeks ago, France was under scrutiny over how it would plug the holes in its budget. Now the issue is whether the euro area's second largest economy can muster a budget at all.

What France does with its strained public finances will be an early test of whether it can still be governed after the hung parliament created by President Emmanuel Macron's move to call snap elections. Financial markets, the European Commission and its euro zone partners are all watching closely.