France’s Political Impasse Is Harming the Economy, Le Maire Says

(Bloomberg) -- France’s caretaker finance minister warned that the economy is taking a hit as President Emmanuel Macron hesitates to appoint a new prime minister.

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“We need a quick clarification,” Bruno Le Maire said on the sidelines of a visit to customs officials securing the Paris Olympics. “We need France to quickly have an operational government and Prime Minister because this period is costly for France.”

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Business confidence figures published earlier Thursday showed a sharp drop in sentiment during a turbulent election campaign that has delivered no clear majority capable of forming a new government.

Macron has called for a political truce and said he will not appoint a prime minister until after the Olympics.

“Our small and medium sized companies don’t like uncertainty — they need to know where they are heading and how they can invest,” Le Maire said.

The minister, who has served in his post throughout Macron’s seven years in office, also said that the political inertia is damaging public finances because the caretaker government’s powers to curb spending are limited.

Still, Le Maire said he is continuing to prepare the 2025 budget for his successor to present at the start of October. He said the fiscal plans will be in line with his pledges to bring down France’s budget deficit that swelled last year.

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“I’m defending the option of a fast repair of public finances,” Le Maire said. “The next government will have the choice to stick with this option or choose another, but at least things will be ready.”

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