Michel Barnier Takes Office as Prime Minister

PARIS (Reuters) – French conservative Michel Barnier, named prime minister by President Emmanuel Macron on Thursday, faces an overflowing in-tray on his desk, not least with tricky budget legislation to pass.

Forming a Government

Barnier’s first order of business will be to form a new government, which requires Macron’s approval. Given Macron’s lack of a parliamentary majority, Barnier must carefully assign ministerial portfolios, as opposition parties will be unforgiving of any mistakes.

Vote of Confidence

Traditionally, the new prime minister delivers a speech to the National Assembly shortly after forming a government, outlining policy priorities and potential reforms. If Barnier does not seek a vote of confidence from the lower house, opposition parties may do so instead.

A vote of no-confidence against Barnier’s government would necessitate 289 votes in the 577-seat lower house. With leftist parties likely to oppose him, Barnier’s survival may depend on whether the far-right National Rally abstains from a vote against him, as they await his stance on immigration and potential changes to France’s voting system.

Budget Challenges

If Barnier passes the confidence vote, his first major policy challenge will be drafting the 2025 budget legislation, due to lawmakers by Oct. 1. This leaves little time for his team to finalize work left by the outgoing government by mid-September, when the national public finance watchdog has the opportunity to assess the budget.

This task is complicated by the budget deficit already running billions of euros over target, forcing Barnier to make tough decisions regarding spending cuts and tax increases. Once the budget is presented to parliament, his finance minister must defend it against calls from the left for broad-based tax hikes.

The likely contentious journey of the budget bill through parliament may take the remainder of the year, with a final vote expected in December. Dissatisfied opposition parties may call for a vote of confidence, putting Barnier’s government at risk of being toppled.