Staying in office is the main challenge for troubled France's new government
PARIS — France’s president and prime minister managed to form a new government just in time for the holidays. Now comes the hard part.
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Crushing debt, intensifying pressure from the nationalist far right, wars in Europe and the Mideast: Challenges abound for President Emmanuel Macron and Prime Minister Francois Bayrou, after an already tumultuous 2024.
The most urgent order of business is passing a 2025 budget. Financial markets, ratings agencies and the European Commission are pushing France to bring down its deficit, which threatens the stability and prosperity of all countries that share the euro currency.
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France’s debt — currently estimated at 112% of gross domestic product — has been high for years. It grew further after the government gave aid payments to businesses and workers during COVID-19 lockdowns even as the pandemic depressed growth, and capped household energy prices after Russia invaded Ukraine. The bill is now coming due.
But France’s previous government collapsed this month because Marine Le Pen’s far-right party and left-wing lawmakers opposed 60 billion euros in spending cuts and tax hikes in the original 2025 budget plan. Bayrou and new Finance Minister Eric Lombard are expected to scale back some of those promises, but the calculations are tough.
“The political situation is difficult. The international situation is dangerous, and the economic context is fragile,” Lombard, a low-profile banker who advised a Socialist government in the 1990s, said upon taking office.
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“The environmental emergency, the social emergency, developing our businesses — these innumerable challenges require us to treat our endemic illness: the deficit,” he said. “The more we are indebted, the more the debt costs, and the more it suffocates the country.”
This is France’s fourth government in the past year. No party has a parliamentary majority and the new Cabinet can only survive with the support of lawmakers on the center-right and center-left.
Le Pen — Macron’s fiercest rival — was instrumental in ousting the previous government by joining left-wing forces in a no-confidence vote. Bayrou consulted her when forming the new government and Le Pen remains a powerful force.
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That angers left-wing groups, who had expected more influence in the new Cabinet, and who say promised spending cuts will hurt working-class families and small businesses hardest. Left-wing voters, meanwhile, feel betrayed ever since a coalition from the left won the most seats in the summer’s snap legislative elections but failed to secure a government.
The possibility of a new no-confidence vote looms, though it’s not clear yet how many parties would support it.
Macron has repeatedly said he will remain president until his term expires in 2027.
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But France’s constitution and current structure, dating from 1958 and called the Fifth Republic, were designed to ensure stability after a period of turmoil. If this new government collapses within months and the country remains in political paralysis, pressure will mount for Macron to step down and call early elections.
Le Pen’s ascendant National Rally is intent on bringing Macron down. But Le Pen faces her own headaches: A March court ruling over alleged illegal party financing could see her barred from running for office.
The National Rally and hard-right Interior Minister Bruno Retailleau want tougher immigration rules. But Bayrou wants to focus on making existing rules work. “There are plenty of (immigration) laws that exist. None is being applied,” he said Monday on broadcaster BFM-TV, to criticism from conservatives.
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Military spending is crucial, amid fears about European security and pressure from U.S. President-elect Donald Trump for Europe to spend more on its own defense. French Defense Minister Sebastien Lecornu, who wants more military aid for Ukraine and to ramp up France’s own weapons production, kept his job and enjoys broad support.
More immediately, Macron wants an emergency law in early January to allow speeded-up reconstruction of the cyclone-ravaged French territory of Mayotte, in the Indian Ocean. Thousands of people are in emergency shelters and authorities are still counting the dead more than a week after the devastation.
Meanwhile the government in the restive French South Pacific territory of New Caledonia collapsed Tuesday in a wave of resignations by pro-independence figures — another challenge for the new overseas affairs minister, Manuel Valls, and the incoming Cabinet.
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PARIS — France’s president and prime minister managed to form a new government just in time for the holidays. Now comes the hard part.
Crushing debt, intensifying pressure from the nationalist far right, wars in Europe and the Mideast: Challenges abound for President Emmanuel Macron and Prime Minister Francois Bayrou, after an already tumultuous 2024.
The most urgent order of business is passing a 2025 budget. Financial markets, ratings agencies and the European Commission are pushing France to bring down its deficit, which threatens the stability and prosperity of all countries that share the euro currency.
France’s debt — currently estimated at 112% of gross domestic product — has been high for years. It grew further after the government gave aid payments to businesses and workers during COVID-19 lockdowns even as the pandemic depressed growth, and capped household energy prices after Russia invaded Ukraine. The bill is now coming due.
But France’s previous government collapsed this month because Marine Le Pen’s far-right party and left-wing lawmakers opposed 60 billion euros in spending cuts and tax hikes in the original 2025 budget plan. Bayrou and new Finance Minister Eric Lombard are expected to scale back some of those promises, but the calculations are tough.
“The political situation is difficult. The international situation is dangerous, and the economic context is fragile,” Lombard, a low-profile banker who advised a Socialist government in the 1990s, said upon taking office.
“The environmental emergency, the social emergency, developing our businesses — these innumerable challenges require us to treat our endemic illness: the deficit,” he said. “The more we are indebted, the more the debt costs, and the more it suffocates the country.”
This is France’s fourth government in the past year. No party has a parliamentary majority and the new Cabinet can only survive with the support of lawmakers on the center-right and center-left.
Le Pen — Macron’s fiercest rival — was instrumental in ousting the previous government by joining left-wing forces in a no-confidence vote. Bayrou consulted her when forming the new government and Le Pen remains a powerful force.
That angers left-wing groups, who had expected more influence in the new Cabinet, and who say promised spending cuts will hurt working-class families and small businesses hardest. Left-wing voters, meanwhile, feel betrayed ever since a coalition from the left won the most seats in the summer’s snap legislative elections but failed to secure a government.
The possibility of a new no-confidence vote looms, though it’s not clear yet how many parties would support it.
Macron has repeatedly said he will remain president until his term expires in 2027.
But France’s constitution and current structure, dating from 1958 and called the Fifth Republic, were designed to ensure stability after a period of turmoil. If this new government collapses within months and the country remains in political paralysis, pressure will mount for Macron to step down and call early elections.
Le Pen’s ascendant National Rally is intent on bringing Macron down. But Le Pen faces her own headaches: A March court ruling over alleged illegal party financing could see her barred from running for office.
The National Rally and hard-right Interior Minister Bruno Retailleau want tougher immigration rules. But Bayrou wants to focus on making existing rules work. “There are plenty of (immigration) laws that exist. None is being applied,” he said Monday on broadcaster BFM-TV, to criticism from conservatives.
Military spending is crucial, amid fears about European security and pressure from U.S. President-elect Donald Trump for Europe to spend more on its own defense. French Defense Minister Sebastien Lecornu, who wants more military aid for Ukraine and to ramp up France’s own weapons production, kept his job and enjoys broad support.
More immediately, Macron wants an emergency law in early January to allow speeded-up reconstruction of the cyclone-ravaged French territory of Mayotte, in the Indian Ocean. Thousands of people are in emergency shelters and authorities are still counting the dead more than a week after the devastation.
Meanwhile the government in the restive French South Pacific territory of New Caledonia collapsed Tuesday in a wave of resignations by pro-independence figures — another challenge for the new overseas affairs minister, Manuel Valls, and the incoming Cabinet.
