Macron's election setback complicates plans to revamp EDF

French President Emmanuel Macron's setback at this weekend's parliamentary elections is likely to complicate his planned reform of state-owned nuclear power group EDF, muddying the waters over its fate. 

Macron's centrist camp was searching for support from rivals on Monday to salvage some of its reform agenda after the elections delivered a fragmented parliament that leaves it at risk of paralysis. 

Macron already had to scrap an overhaul of EDF - codenamed "Project Hercules" - last year due to opposition by unions and doubts voiced by the European Commission. 

That plan envisaged placing EDF's profitable renewables business in a new company, unburdened by the debt-laden nuclear assets 

Labour groups feared such a set-up would lead to a break-up of the company, while Brussels worried that if the businesses were not fully split, one part could subsidise the other. 

Macron had been hoping to regain the initiative after his re-election for a second term in April..

particularly with energy prices soaring and question marks hanging over Europe's power supply into the winter because of the war in Ukraine.  

But with his "Ensemble" grouping falling well short of an absolute majority in parliament after Sunday's vote, the road ahead is far from clear. 

One question is whether Macron will strike a coalition deal with the conservative Les Republicains - who have for now rejected that option - or enter into negotiations with opponents on a bill-by-bill basis. 

If no agreement can be found, the euro zone's second biggest economy faces political deadlock.