• BUSINESS
    • FINANCE
    • LEGAL
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • HEALTHCARE & PHARMACEUTICALS
    • MEDIA & TELECOM
    • AEROSPACE AND DEFENSE
    • ENERGY
  • MARKETS
    • EUROPEAN MARKETS
    • ASIAN MARKETS
    • U.S. MARKETS
    • COMMODITIES
    • EMERGING MARKETS
    • DEALS
    • RATES & BONDS
  • WORLD
    • UNITED STATES
    • EUROPE
    • UNITED KINGDOM
    • ASIA PACIFIC
    • MIDDLE EAST
    • AFRICA
    • CHINA
    • INDIA
    • JAPAN
    • AMERICAS
    • FRANCE
    • GERMANY
  • POLITICS
    • GOVERNMENT
    • UNITED STATES
    • US SUPREME COURT
  • TECH
    • ARTIFICIAL INTELLIGENCE
    • CYBERSECURITY
    • SPACE
    • DISRUPTED
  • COMMENTARY
  • BREAKINGVIEWS
    • BREAKINGVIEWS PREDICTIONS
  • MONEY
    • WEALTH
    • FUNDS
    • ETFS
  • LIFE
    • LIFESTYLE
    • SPORTS
    • SCIENCE
  • SECTORS
    • ENERGY
    • HEALTHCARE
    • MEDIA & TELECOM
    • SUSTAINABILITY
    • ENVIRONMENT
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • AEROSPACE AND DEFENSE
FinanceTime
  • August 20th, 2026

FinanceTimeFinancetime

  • BUSINESS
    • FINANCE
    • LEGAL
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • HEALTHCARE & PHARMACEUTICALS
    • MEDIA & TELECOM
    • AEROSPACE AND DEFENSE
    • ENERGY
  • MARKETS
    • EUROPEAN MARKETS
    • ASIAN MARKETS
    • U.S. MARKETS
    • COMMODITIES
    • EMERGING MARKETS
    • DEALS
    • RATES & BONDS
  • WORLD
    • UNITED STATES
    • EUROPE
    • UNITED KINGDOM
    • ASIA PACIFIC
    • MIDDLE EAST
    • AFRICA
    • CHINA
    • INDIA
    • JAPAN
    • AMERICAS
    • FRANCE
    • GERMANY
  • POLITICS
    • GOVERNMENT
    • UNITED STATES
    • US SUPREME COURT
  • TECH
    • ARTIFICIAL INTELLIGENCE
    • CYBERSECURITY
    • SPACE
    • DISRUPTED
  • COMMENTARY
  • BREAKINGVIEWS
    • BREAKINGVIEWS PREDICTIONS
  • MONEY
    • WEALTH
    • FUNDS
    • ETFS
  • LIFE
    • LIFESTYLE
    • SPORTS
    • SCIENCE
  • SECTORS
    • ENERGY
    • HEALTHCARE
    • MEDIA & TELECOM
    • SUSTAINABILITY
    • ENVIRONMENT
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • AEROSPACE AND DEFENSE
France's outgoing Prime Minister Michel Barnier speaks next to newly-appointed Prime Minister and President of the Democratic Movement (MoDem) party Francois Bayrou during the handover ceremony at the Hotel Matignon in Paris on December 13, 2024. BERTRAND GUAY/Pool via REUTERS/File Photo
France's outgoing Prime Minister Michel Barnier speaks next to newly-appointed Prime Minister and President of the Democratic Movement (MoDem) party Francois Bayrou during the handover ceremony at the Hotel Matignon in Paris on December 13, 2024. BERTRAND GUAY/Pool via REUTERS/File Photo
France's newly appointed Prime Minister Francois Bayrou looks on, on the day of the handover ceremony at the Hotel Matignon in Paris, France, December 13, 2024. REUTERS/Gonzalo Fuentes/File Photo
France's newly appointed Prime Minister Francois Bayrou looks on, on the day of the handover ceremony at the Hotel Matignon in Paris, France, December 13, 2024. REUTERS/Gonzalo Fuentes/File Photo
France's newly appointed Prime Minister Francois Bayrou reacts on the day of the handover ceremony at the Hotel Matignon in Paris, France, December 13, 2024. REUTERS/Gonzalo Fuentes/File Photo
France's newly appointed Prime Minister Francois Bayrou reacts on the day of the handover ceremony at the Hotel Matignon in Paris, France, December 13, 2024. REUTERS/Gonzalo Fuentes/File Photo
Home
World
Europe

Macron has a new prime minister but the same old problems

December 15th, 2024 | 08:03 AM WORLD Europe 4

Facebook Twitter Google+ LinkedIn Pinterest

Worth reading...

Romania destroys marine drone near Neptun Deep gas project, minister says
Ukraine's parliament approves Yevhenii Khmara as new defence minister
Russian drone attacks kill five in Ukraine's Kherson, governor says
ECB's Rehn says wage growth remains moderate, no second-round effects
By Michel Rose

When veteran centrist Francois Bayrou, France's new prime minister, was education minister in the 1990s, his plan to increase subsidies for private schools led to nationwide protests. He quickly caved in and would stay in the post for four more years.

Three decades later he will face a different force in the shape of a fractured and fractious parliament where one of his earliest tasks - as President Emmanuel Macron's fourth prime minister of the year - will be to pass a budget for 2025.

First he must name a government which, like that of his predecessor Michel Barnier, will have minority support in parliament and be vulnerable to attack from far-right and left-wing opponents.

The ouster of Barnier and his cabinet - the first time France's parliament had voted to remove a government since 1962 - seemed to stun even those behind the move. For now, there is cross-party support for emergency legislation to ensure government funding does not dry up - but then the hard work on a budget for next year will begin.

"The difficulties remain the same as under Michel Barnier," Arnaud Benedetti, a professor at the Sorbonne university, told Reuters. "At least, a motion of no-confidence doesn't seem likely in the very short-term."

A Macron aide said Bayrou was the "most consensual candidate able to bring people together." Socialists said he represented more of the same.

A career politician, Bayrou, 73, was the torch-bearer of centrism until Macron reshaped the political landscape in 2017, dynamiting the traditional mainstream parties in a campaign Bayrou rallied behind.

Bayrou has in the past talked tough on the risks posed by France's rising debt pile.

He did so again on Friday, saying the country's debt was a "moral problem" as much as a financial one. "I hear your warning on the seriousness of the situation and I agree," he told Barnier.

But he has placed a high value on keeping the peace, whether with the unions, lawmakers or the myriad of powerful vested interests in France.

Keeping the peace in a National Assembly dominated by three warring factions will be nigh-on impossible, however.

Lawmakers' pushback over the 2025 budget bill led to Barnier's downfall and left-wing leaders say they may try to topple Bayrou should he also use special constitutional powers to ram through the budget without a vote in parliament.

"Bringing onboard demands from opposition parties may be fiscally costly and the degree of fiscal consolidation may be limited next year as a result," said JP Morgan's Raphael Brun-Aguerre in a note.

FAR-RIGHT'S BUDGET RED LINES ENDURE

Through the week Macron held talks with party chiefs spanning the centre-right Republicans to the Communists.

He appealed to all 'Republican forces' to unite but opted to resist Socialist Party calls to appoint a premier from within their ranks, unwilling to risk unwinding reforms that liberalised the euro zone's second-largest economy and placed the pension system on a more financially sound footing.

Even so, the president's 2023 pension reform will remain in his opponents' crosshairs.

"Our red lines remain," Jordan Bardella, leader of the far-right National Rally told reporters shortly after Bayrou was named. Those red lines include indexing pensions to inflation throughout 2025.

One opinion poll this week showed that 35%-38% of voters intended to support Bardella's boss, Marine Le Pen, in the next presidential election due in 2027 - a level not seen before for the far-right leader and putting her in the lead.

Furthermore, even if Bayrou's political opponents do not get in the way, the challenges for his future government will be immense.

It will need to reduce the budget deficit from a projected 6.1% for 2024 whilst keeping protest-prone trade unions at bay, increasing military spending for Ukraine and finding ways to support an ailing industrial sector.

Barnier had promised to bring the deficit down with tax rises for the wealthy and for big companies, as well as a curbs on the planned rise in pension payments. But these measures fell by the wayside when his government was toppled.

Former finance minister Bruno Le Maire, who has been grilled by lawmakers investigating his role in France's failure to curb its deficit, gave a scathing indictment of parliament.

"This assembly taxes, spends, censors," he said. "It has long lost any sense of economic and budget realities."

  • Topic
  • France
  • POLITICS/BAYROU (ANALYSIS, PIX)
Facebook Twitter Google+ LinkedIn Pinterest
Previous article Romania destroys marine drone near Neptun Deep gas project, minister says

Related Posts

Europe
August 20th, 2026

Romania destroys marine drone near Neptun Deep gas project, minister say...

Europe
August 19th, 2026

Ukraine's parliament approves Yevhenii Khmara as new defence minister

Europe
August 19th, 2026

Russian drone attacks kill five in Ukraine's Kherson, governor says

Europe
August 19th, 2026

ECB's Rehn says wage growth remains moderate, no second-round effects

Europe
August 19th, 2026

Ukraine's anti-corruption agencies launch probe ahead of key defence min...

Europe
August 18th, 2026

EU sees Iceland vote as potential boost for enlargement optics

The Wire
Aug 20th 6 h ago
Business

AI productivity gains may not curb inflation, IMF's Tenreyr...

Aug 20th 6 h ago
Aerospace & Defense

Latvia says drone in its airspace on August 14 was Ukrainia...

Aug 20th 6 h ago
India

Indian central bank deputy urges banks to improve retail fo...

Aug 20th 6 h ago
Baseball

Guardians chase elusive home series win in matchup vs. Gian...

Aug 20th 6 h ago
Americas

Brazil to keep fiscal framework, spending restraint under n...

TRENDING ON FINANCETIME
Aug 20th, 2026 Asia Pacific

Bangladesh elects ruling party veteran Alamgir as president

Aug 20th, 2026 Africa

AFRICA-FX-Ghana's currency back under pressure, Uganda's on front foot

Aug 20th, 2026 Soccer

How would a vote of no confidence work to oust FIFA president Infantino?

Aug 20th, 2026 Europe

Romania destroys marine drone near Neptun Deep gas project, minister says

Aug 20th, 2026 Baseball

Sal Stewart, Reds strive for edge in finale of 5-game series vs. Cards

Markets-Sectors
TELECOMMUNICATIONS SERVICES +0.03%

  • BUSINESS
  • MARKETS
  • WORLD
  • POLITICS
  • TECH
  • COMMENTARY
  • BREAKINGVIEWS
  • MONEY
  • LIFE
  • SECTORS
  • Back to top
FinanceTime
FinanceTime

World Business & Financial News, Breaking US & International News

Additional Services
  • Privacy-Policy
  • Terms and Conditions
© Financetime.org 2026. All rights reserved. Hosted by LeadsDeposit.com
Produced by C-iT