France Unveils New Government Amid Economic Crisis
France has unveiled a new government, composed of former ministers and senior civil servants, in a bid to oversee the passage of a 2025 budget and prevent a deepening of the country’s economic crisis. Prime Minister Francois Bayrou’s new team will be under immediate pressure to slim down a deficit expected to end the year at above 6% of gross domestic product.
Eric Lombard, the head of Caisse des Depots, the investment arm of the French government, has been appointed as finance minister, working alongside Amélie de Montchalin as budget minister. They will need to begin work immediately with Bayrou on passing a 2025 budget bill, following parliamentary pushback over the proposed legislation that led to the toppling of Bayrou’s predecessor, former Prime Minister Michel Barnier.
Bayrou’s new team will face immediate pressure to pass a budget, with parliament in recess until January 13. Once lawmakers return, the government will likely be living day-to-day, under the constant threat of no-confidence motions. French President Emmanuel Macron will hope Bayrou can stave off no-confidence votes until at least July, when France will be able to hold a new parliamentary election.
The new government includes several familiar faces, with Conservative Bruno Retailleau remaining interior minister, Foreign Minister Jean-Noel Barrot and Defence Minister Sebastien Lecornu also remaining in their posts. Élisabeth Borne, who stepped down as prime minister in January, has been appointed as education minister, while former interior minister Gerard Darmanin will lead the Justice Ministry.
Bayrou’s government has already faced criticism, with an opinion poll finding 64% of respondents were dissatisfied with his appointment as prime minister. The government’s proposal to unions to jointly come up with a new version of a much-contested pension reform has received lukewarm support from parties ranging from the Socialists to the conservatives.
Lombard’s appointment as finance minister has also raised concerns, with some accusing him of being too close to Macron and leaning too far left politically.
