French President Emmanuel Macron has pledged to swiftly appoint a replacement and may announce the decision as soon as Wednesday, according to a presidential adviser who spoke to POLITICO on the condition of anonymity due to not being authorized to speak publicly on the matter.
Several potential candidates have been floated by French media in recent days. Among them are François Bayrou, a centrist ally of Macron; Sébastien Lecornu, the Armed Forces Minister; and Catherine Vautrin, the conservative Minister for Partnerships with Territories and Decentralization.
On Monday, Macron plans to meet with the leaders of several political parties, including representatives from the Greens and the Communists. However, the National Rally, which has not met with Macron at the Élysée since the government’s recent collapse, has signaled its willingness to support an interim solution. Such a measure would provide Macron and the incoming French government additional time to address the country’s financial challenges.
Yet, high-ranking officials have cautioned that merely extending last year’s budget could lead to significant complications. Michel Barnier, for instance, warned that this approach might impose higher taxes on 18 million households and fail to mitigate a fiscal deficit projected to reach 6.1 percent of France’s gross domestic product this year—double the European Union’s allowable limit.
Barnier’s government had unsuccessfully attempted to persuade lawmakers to approve a plan aimed at reducing the deficit to 5 percent by 2025. The proposal included €60 billion in combined tax increases and spending cuts but failed to gain traction in the legislature.
Despite the ongoing political turbulence, financial markets remain relatively calm. Analysts have already accounted for political risks and continue to view the French economy as stable overall, even considering the nation’s substantial debt levels.
Anthony Lattier contributed to this report.
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