New French government named after previous one collapsed in budget fight

French President Emmanuel Macron’s office has announced a new government, after the previous Cabinet collapsed in a historic vote prompted by fighting over the country’s budget.

Newly named Prime Minister Francois Bayrou put together the government that includes members of the outgoing conservative-dominated team and some new figures from centrist or left-leaning backgrounds.

Coming up with a 2025 budget will be the most urgent order of business.

Deadlock

The new government enters office after months of political deadlock and pressure from financial markets to reduce France’s colossal debt.

No single party holds a majority in the National Assembly.

Mr Bayrou’s decades of political experience are seen as key in efforts to restore stability.

Marine Le Pen’s far-right party helped bring down the previous government, and Mr Bayrou’s Cabinet will seek to rely on moderate politicians from right and left to stay in power.

Banker

Banker Eric Lombard will be finance minister, a crucial post when France is working to fulfil its promises to European Union partners to reduce its deficit, estimated to reach 6% of its gross domestic product this year.

Mr Lombard briefly worked as an adviser to a socialist finance minister in the 1990s.

Bruno Retailleau stays on as interior minister, with responsibility for France’s security and migration policy.

Sebastien Lecornu, who has been at the forefront of France’s military support for Ukraine, remains defence minister, while foreign minister Jean-Noel Barrot, who has travelled extensively in the Middle East in recent weeks, also retains his post.

Among the new faces are two former prime ministers. Manuel Valls will be minister for overseas affairs, and Elisabeth Borne takes the education ministry.