France has unveiled a new government led by Prime Minister Francois Bayrou, who will face immediate pressure to pass a 2025 budget bill and prevent the country’s crisis from deepening. The new team will need to address a deficit expected to end the year at above 6% of gross domestic product.
Former Prime Minister Michel Barnier was toppled due to parliamentary pushback on the proposed legislation. Bayrou’s new government, which includes Eric Lombard as finance minister and Amélie de Montchalin as budget minister, will be under constant threat of no-confidence motions once lawmakers return from their recess.
President Emmanuel Macron hopes Bayrou can stave off no-confidence votes until at least July, when France will hold a new parliamentary election. The government’s struggle to pass the 2025 budget bill has spooked investors and ratings agencies.
Bayrou faced criticism for his initial appointment as prime minister, with an opinion poll showing 64% of respondents were dissatisfied with his appointment. His offer to mainstream parties to form a government has received lukewarm support, with only some unions expressing interest in jointly coming up with a new version of a pension reform proposal.
The choice of Lombard as finance minister may also raise concerns due to his past association with Macron and his experience working at Generali France, where he was the chief executive. Bayrou’s team will need to work closely with lawmakers to address the country’s public finances before the summer.
Source: https://www.reuters.com/world/no-french-government-before-monday-evening-presidency-says-2024-12-23