France’s political crisis continues to escalate after the third prime minister in the last year resigned, putting increasing pressure on President Emmanuel Macron to step down after eight years in office. Prime Minister Sébastien Lecornu announced his resignation in early October, after only 26 days in the position.

Lecornu and his two predecessors struggled to address France’s national debt and the mounting division between political parties. For the last year, no party has assumed the majority, locking the nation in a stalemate as they struggle to address the nation’s budget crisis. At the start of this year, public debt was at €3.4 trillion, nearly 114% of economic output, according to BBC. The budget deficit is expected to reach 5.4% of gross domestic product (GDP).

The political gridlock is weighing on the nation’s industries. The country’s industrial output fell 0.7% in August, according to the Wall Street Journal, with four of the last five months seeing a decline in output. The drop in production in August was partially spurred by the winding down in the output of airplanes, after a big spike in June. Overall, production of transportation materials, outside of cars, dropped 6% in August, with declines also spotted in textiles, electrical goods and chemical industries.

As a major eurozone country, France’s economic woes have far-reaching implications for the rest of Europe. Across Europe, industry has been stifled by tariffs from the United States starting at the beginning of the year. In July, the European Union agreed to a 15% baseline tariff on all imports out of the EU. While the baseline tariff is lower than anticipated, it is predicted to cut EU exports to the United States by 17% over the next few years, according to the Wall Street Journal.

Despite political tensions domestically and internationally, France’s economy remains stable. A survey by France’s central bank of 8,500 businesses found businesses in the service sector continued to advance in September, according to Reuters, with more moderate growth in manufacturing and slight decline in construction. “Business leaders highlight the national political climate and trade tensions,” the central bank said, per Reuters.

For credit managers extending credit in France, a majority of their sales are to existing customers, according to FCIB’s Credit and Collections Survey. Customers in France are largely granted 1-30 day terms (41%) and 31-60 day terms (41%), with some customers granted 61-90 day terms (16%). Respondents extending credit in the region find that customers are 11 days beyond terms on average.

Respondents find that payment delays are largely staying the same (58%), with some creditors seeing a slight uptick (16%). Delays are mostly attributed to billing disputes (60%), unwillingness to pay (50%) and supply chain issues (30%).

“Know your customer,” one respondent advised. “We sell to well established businesses with branches in the United States.”