New French government battles instability, Budget challenges

France's new prime minister named a government on Sunday, bringing back former finance minister Bruno Le Maire to serve as defence minister, where he will help oversee French military support for Ukraine and address European security threats posed by Russia.

Other key positions in the new cabinet, announced by President Emmanuel Macron's office, remain largely unchanged. Conservative Bruno Retailleau continues as interior minister, overseeing policing and internal security; Jean-Noel Barrot remains foreign minister; and Gerald Darmanin keeps the justice portfolio.

However, the lifespan of Prime Minister Sebastien Lecornu's new minority government may be short, facing opposition in Parliament where it lacks a stable majority. Macron's opponents on the left are mobilizing to bring down Lecornu through a no-confidence vote, while the far-right National Rally party, led by Marine Le Pen, is pushing for snap legislative elections.

The immediate priority for 39-year-old Lecornu, a centrist and close ally of Macron, is to maintain his position. Macron promoted Lecornu previously defence minister last month, making him France's fourth prime minister in a year, after his predecessor was ousted by a deeply divided Parliament amid controversy over spending cuts.

This prolonged political instability is complicating government efforts to address France's budget difficulties and weakening Macron's domestic standing, even as he navigates pressing international challenges, including wars in Ukraine and Gaza, as well as shifting priorities of U.S. President Donald Trump.

Le Maire, a former finance minister until last year, succeeds Lecornu as defence minister. Lecornu’s promotion to prime minister places him at the center of political turmoil that has plagued France for over a year, with minority governments collapsing in rapid succession.

The political deadlock traces back to Macron’s decision to dissolve the National Assembly, the parliament’s lower house, in June 2024. That move triggered a legislative election that Macron hoped would strengthen his pro-European centrist alliance. Instead, it resulted in a fragmented legislature with no dominant political bloc, a first in France’s modern republic.

Besides Le Maire, the most notable cabinet appointment is Roland Lescure as finance minister. France has one of the world’s largest economies and the second-largest in the European Union, but ballooning deficits and debt are raising investor concerns and dividing political opinion. Lescure previously held junior roles in the finance ministry until last year.

Lecornu will face a key test on Tuesday when he addresses the National Assembly, outlining his government’s direction and plans for next year’s budget, a pressing and contentious national priority. He announced Friday that he will not use a special constitutional power to push the budget through Parliament without a vote, as some predecessors have done, opting instead to seek compromise with lawmakers from both left and right.

Since Lecornu’s appointment, unions and activists have staged three days of nationwide protests, including one on Thursday that shut down the Eiffel Tower, opposing anticipated spending cuts to public services.