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FREJUS, FRANCE – 05/03/2023: Mayor of Pau François Bayrou is seen at the funeral of François Léotard. François Léotard, former French politician and Minister of Defense and Culture, died on April 25 at the age of 81. His funeral is held in Frejus. (Photo: Laurent Coust/SOPA Images/LightRocket via Getty Images)
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French President Emmanuel Macron on Friday named Francois Bayrou as the new prime minister, as political uncertainty weighs on the country’s administration after last week’s ouster of Michel Barnier’s government.
Veteran centrist politician Bayrou has been named the country’s fourth prime minister this year, after Barnier he resigned on December 5, in the wake of the historic vote of no confidence, an alliance between the opposition parties was unlikely to be seen between the left and the extreme right.
Macron was expected to announce a successor a day after Barnier’s departure, but, in a sign of the country’s political deadlock, that decision was delayed until this week. The President also missed the 48-hour deadline given by him at a meeting of party leaders on Tuesday.
The delay reflects the growing confusion that has dogged French politics in recent months, with crucial legislative elections this summer and growing divisions over France’s huge deficit.
Macron called elections in June and July with the aim of consolidating the power base of his centrist alliance in the National Assemblybut instead emerged with a greatly reduced power base.
Last week’s confidence vote – which came after weeks of debate over 2025 budget plans to raise taxes and cut public spending – was backed by the leftist New Popular Front (NFP) alliance and Marine Le Pen’s far-right National Rally (RN). Motion against Barnier’s government. It was the first time since 1962 that a French government has been removed.
Barnier was in office for just three months, replacing Gabriel Attal, who took over in January. France’s youngest prime minister in modern history — and Elisabeth Borne before her.
The incoming prime minister will now face the same pressures as his predecessor, as both left and right are expected to hound the new government to deliver their agendas for the 2025 budget.
Speaking to reporters shortly after the announcement, National Rally leader Jordan Bardella said he had no plans to censure the new prime minister, but noted that “red lines” about his party’s policy remained, according to Reuters.
The leader of the Communist Party, Fabien Roussel, said a the message He said on X that Bayrou’s appointment was a “bad idea” and questioned whether Bayrou would continue to push a policy that “has failed and been punished,” according to a Google translation.
The National Rally, for its part, wants concessions to increase pensions, to reject the planned reductions in reimbursement of medicines and to reduce contributions to the budget of the European Union. The New Popular Front, on the other hand, wants to raise public spending and raise the tax on super profits and the wealthy.
Based on this, analysts believe it is likely that France’s main political blocs will agree on an interim budget, simply agreeing on the 2024 budget for next year. This will avoid a government “shutdown” in the new year where France cannot meet its financial obligations.
Such a move would, however, delay the urgent need to address France’s fiscal woes, with the budget deficit expected to reach 6.1% of GDP in 2024, and is expected to rise further if spending cuts are not taken.
Investors are now looking cautiously at France The yield on France’s benchmark 10-year government bond Up 3 basis points Friday morning to around 2.99% before the announcement. the french CAC 40on the other hand, it increased by 0.5%.
— CNBC’s Holly Ellyatt contributed to this report.
