French Premier Pitches New Cabinet to Exit Political Impasse

(Bloomberg) -- French Prime Minister Michel Barnier met with President Emmanuel Macron in Paris late on Thursday to propose a new government after two weeks of tense consultations with rival political groups.

Most Read from Bloomberg

Barnier’s office said the talks with the president were “constructive” and that the final makeup of his team would be announced by Sunday.

Getting the balance right will be crucial for the survival of the new administration, which could easily be ejected by a no-confidence vote in the divided National Assembly where no group has a majority following snap elections in July.

The first urgent test will come with the presentation of a budget bill to rein in France’s galloping deficit. The fiscal situation has deteriorated further over the summer under the watch of a caretaker government, fueling tensions between different parties over how to tackle the situation.

“The prime minister presented the architecture and composition of his government that respects balance,” his office said in a statement.

The presidential palace did not provide a list of new ministers, who can only be formally appointed by the president. According to reports in the French media, the new team would be largely made up of figures from Macron’s centrist group and Barnier’s conservative Republicans party.

Agence France-Presse said Barnier proposed Bruno Retailleau, the leader of the Republicans in the Senate, as interior minister. The 63-year-old has been a vocal critique of Macron’s past governments, demanding more fiscal discipline and taking a more conservative stance on social issues, including voting against inscribing the freedom of abortion in the French constitution.

The AFP and other media also reported that the prime minister will promote outgoing minister for European affairs Jean-Noel Barrot, who is fluent in English, to the post of foreign minister. A member of Modem, the centrist party that is part of Macron’s coalition in parliament, the 41-year-old is likely to stick with broad pro-European foreign policies and support for Ukraine. In a further sign of continuity, Sebastien Lecornu is set to remain defense minister, according to reports.

French media also reported that Laurent Wauquiez, the leader of the Republicans in the National Assembly, turned down the position of finance minister in a meeting with Barnier and other representatives of political parties earlier on Thursday.

Two little-known parliamentarians from Macron’s group were tipped to take on key economic roles, according to AFP. Antoine Armand would become economy and industry minister while Mathieu Lefèvre would be named budget minister, AFP said.

In previous governments, a finance minister has had authority over both of those junior posts and been responsible for European and international negotiations. It was not clear whether that architecture would be replicated.

According to Barnier’s office, he told the gathering of political parties on Thursday that his priorities include improving public services, controlling immigration, reinforcing France’s economic attractiveness and bringing public finances under control.

The former European Union Brexit negotiator and seasoned right-wing politician was appointed two weeks ago in a bid to bring an end to months of political uncertainty that followed Macron’s decision to call a snap legislative vote.

(Updates with details on possible economy and budget portfolios.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.