In more than half of districts, three people got through to the run-off. In those situations, the third-placed candidate can withdraw to boost the chances of another mainstream party defeating the National Rally.

The deadline for filing papers for the second round is 6 p.m. on Tuesday, and at that point the picture will become clearer.

Jean-Luc Melenchon of the New Popular Front, an alliance of left-wing parties, said that he would encourage third-placed candidates from his group to withdraw, while Macron himself released a statement calling for “a broad, clearly democratic and republican alliance for the second round.”

Macron’s Renaissance party said it would pull third-placed candidates to help those who respect “the values of the republic” beat the far right.

That’s the catch though — Melenchon’s France Unbowed has proposed a raft of spending that would flout European Union budget rules and potentially alarm investors. So it’s not clear whether Macron’s party will withdraw in races where the far left would benefit.

French Finance Minister Bruno Le Maire was among those saying he would not call for voters to pick France Unbowed candidates in the second round. Macron’s first prime minister, Edouard Philippe, has also said no votes should go to Melenchon’s party.

“France Unbowed is a danger for the nation, the National Rally is a danger for the republic – you don’t choose one danger in favor of another,” Le Maire said on France Inter radio Monday. “In politics you have to take positions of principle, not of circumstances.”

In an early sign that Macron’s team is seeking to build alliances with the left, the prime minister decided Sunday evening to suspend the implementation of an unpopular change to unemployment insurance. The government had said the plans would encourage people into work by paring back the generosity of welfare, but opposition parties widely criticized the move at a time when joblessness has risen.

Even though Macron’s presidency isn’t formally at stake – and he’s said he has no plans to resign – Sunday’s result indicates it’s likely he’ll either have to share governing responsibilities with Le Pen’s group or manage a parliament that is basically gridlocked.

An absolute majority by the National Rally would set up Bardella to become prime minister in a power-sharing arrangement called cohabitation — when the president and premier are from different parties. Bardella has sought to reassure voters that he will take a responsible approach to economic policy, while offering little in the way of detail.

The National Rally opposes most of Macron’s priorities, from migration and pension reform to strengthening the E.U., and investors would prefer gridlock. The party has said that it won’t lead the next government unless it has full control of the legislature.

If alliances forming to block Le Pen from absolute power start to look credible, French markets would likely recover, according to Kathleen Brooks, research director at XTB.

“A hung parliament could make it hard to get anything done in France in the current parliament, which is exactly what the markets would like,” she said.

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(With assistance from William Horobin, Rachel Evans, Blaise Robinson and Aline Oyamada.)

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