France’s political crisis will likely take centre stage at a European Central Bank meeting Thursday, with turmoil in the eurozone’s second-biggest economy causing a fresh headache for policymakers.

The ECB is expected to hold its key interest rate steady at two percent for its second straight meeting, with inflation under control and trade tensions having eased since an EU-US deal was agreed in July.

But the latest French political crisis has thrown a new curveball at the central bank for the 20 countries that use the euro.

Francois Bayrou quit as prime minister on Monday following his defeat in a confidence vote over an austerity budget, and was replaced just 24 hours later by Sebastien Lecornu — France’s third prime minister within a year.

The turmoil sent France’s borrowing costs, a

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