France’s New Government Faces Immediate Challenges Amid Crisis

Prime Minister François Bayrou unveiled a new French government on Monday, featuring former ministers and senior civil servants in key roles. Eric Lombard, head of the Caisse des Dépôts, was appointed finance minister, working alongside Amélie de Montchalin as budget minister. The reshuffle comes as Bayrou faces the daunting task of passing a contentious 2025 budget, a failure that led to the ousting of his predecessor, Michel Barnier. With the national deficit projected to exceed 6% of GDP by year’s end, the government must address investor concerns and stabilize public finances in a politically fractured parliament.

The newly assembled cabinet retains key figures, including Bruno Retailleau as interior minister and Jean-Noël Barrot as foreign minister. Élisabeth Borne, former prime minister, now serves as education minister, while Gérard Darmanin leads the Justice Ministry. Despite efforts to form a unity government by engaging mainstream parties, Bayrou’s overtures to opposition leaders and unions over pension reforms have seen little support. Meanwhile, public dissatisfaction with Bayrou’s appointment reached 64%, according to a recent poll, further complicating his administration’s fragile start.

Bayrou’s choice of Lombard as finance minister has drawn mixed reactions. With a background in both public and private finance, Lombard is seen as a capable technocrat, though critics question his perceived closeness to President Emmanuel Macron and his potential leanings. As parliament prepares to reconvene in January, the new government faces immediate pressure to avoid no-confidence votes, implement fiscal reforms, and navigate a divided political landscape until fresh parliamentary elections can be held in July.

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