French President Emmanuel Macron is holding a crucial meeting on Tuesday with representatives from various political parties in a bid to form a new government following the collapse of Prime Minister Michel Barnier’s administration last week, Bloomberg reports.
The meeting aims to break the political deadlock caused by a no-confidence vote over the 2025 budget, which saw an unprecedented alliance between Marine Le Pen’s far-right National Rally and a left-wing coalition.
Macron’s office stated that the meeting will include “all political parties who have indicated a willingness to compromise and form a government of general interest.” Notably, Le Pen’s party was not invited to these consultations. This marks a shift in strategy from Macron’s previous approach of individual party meetings.
The government crisis has left France without a budget for 2025, prompting the outgoing cabinet to prepare a stopgap spending bill. This interim measure, to be discussed on Wednesday, will allow the government to continue collecting taxes from January 1st and maintain essential public services until a new budget is approved. Budget Minister Laurent Saint-Martin warned that finalizing a full 2025 budget could take weeks or even months.
Macron’s search for a new prime minister has been hampered by the fragmented National Assembly, resulting from this summer’s elections, leaving him without a clear parliamentary majority. The far-right now wields significant leverage in this fractured political landscape. The previous appointment of Barnier took nearly two months, and the current situation demands a swifter resolution.
The political uncertainty initially sparked concerns in financial markets, with French government borrowing costs rising sharply. However, recent signals of greater cooperation from opposition parties have calmed investor anxieties, leading to a rally in French government bonds.
Macron’s strategy now involves attempting to secure support from more moderate factions within the leftist New Popular Ecological and Social Union (NUPES) alliance, potentially drawing support from the Socialist party while navigating the more radical elements within Jean-Luc Mélenchon’s France Unbowed.
