François Bayrou appointed as France's new prime minister – what's next?
François Bayrou becomes France's new PM after a no-confidence vote ousts Michel Barnier


The centrist François Bayrou, 73, has been appointed prime minister of France after a historic vote of no-confidence put an end to the “shortlived” minority coalition of Michel Barnier, says The Guardian. Barnier’s government fell after he invoked special powers to push through his 2025 austerity budget without a vote in parliament. Taking office, Bayou, a political heavyweight who helped Emmanuel Macron win the presidential election in 2017 and who has run for president three times himself, acknowledged that he had a mountain to climb. He received a “baptism of fire”, with Moody’s downgrading France’s credit rating within hours of his appointment, says CNBC. Moody’s blamed political instability for the downgrade, saying it would make it hard for France to tackle its deficit. Investors’ unease has already pushed France’s ten-year borrowing costs above 3% this year.
Bayrou, founder and leader of the MoDem party, commands respect across the political spectrum, but the National Assembly remains “crippled by the same three-bloc impasse”, says Hugh Schofield on the BBC. The opposing three blocs of the 577-seat lower house are: Marine Le Pen’s far-right party, the National Rally, Macron’s pro-business allies, and the New Popular Front, a left-wing alliance that ranges from the Socialists to the far-left France Unbowed led by Jean-Luc Melenchon. Before Bayrou draws up a new budget, he will need to form a new government, the composition of which will depend on whether he manages to build bridges. Macron has been holding talks with parties from the centre-left and centre-right to broaden the outgoing minority conservative-centrist coalition, but so far all he has got from the Socialists, who hold 66 seats, is a “vague commitment” not to vote Bayrou out immediately, says The Economist.
Will François Bayrou's government mark a shift to the left?
Macron’s obdurate refusal to appoint a prime minister from the left, despite the New Popular Front winning the most seats in last summer’s snap elections, stems from fear of having his “legacy” unpicked, says John Keiger in The Telegraph. With “tiresome predictability”, France Unbowed has already said that it will table a motion of no confidence when Bayrou’s new government is appointed. Although Le Pen is unlikely to join him this time, Bayrou will be keen to reach a truce with the Socialists and Greens in order to “rob the two opposition blocs of the majority needed to win a no-confidence vote”. In terms of the budget, the “risk of things going wrong is high”. France is deeply wedded to its “social-security provisions and generous state allowances that have cushioned the population against economic reality and left the country with an onerous tax burden”. Many still resent Macron for raising the pension age from 62 to 64, even though it is “still among the lowest in Europe”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Bayrou’s “bridge-building instincts” are a bonus, say Leila Abboud and Ian Johnston in the Financial Times. He already enjoys reasonable relations with both sides. However, he has also been described as “having a Pyrenean-sized ego” and, according to veteran French commentator Alain Duhamel, will “not hesitate to exert his power”. He will “not be easily disciplined”, says Duhamel, and will “tilt policy more towards the left”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Emily has worked as a journalist for more than thirty years and was formerly Assistant Editor of MoneyWeek, which she helped launch in 2000. Prior to this, she was Deputy Features Editor of The Times and a Commissioning Editor for The Independent on Sunday and The Daily Telegraph. She has written for most of the national newspapers including The Times, the Daily and Sunday Telegraph, The Evening Standard and The Daily Mail, She interviewed celebrities weekly for The Sunday Telegraph and wrote a regular column for The Evening Standard. As Political Editor of MoneyWeek, Emily has covered subjects from Brexit to the Gaza war.
Aside from her writing, Emily trained as Nutritional Therapist following her son's diagnosis with Type 1 diabetes in 2011 and now works as a practitioner for Nature Doc, offering one-to-one consultations and running workshops in Oxfordshire.
-
Investors should cheer the coming nuclear summer
The US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
The Palace of Westminster is falling down
The Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
'Gen Z is facing an AI jobs bloodbath'
Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Should the Online Safety Act survive?
The Online Safety Act, a measure to safeguard children, is having unintended consequences
-
The secret behind Sweden’s success
Opinion Sweden's stock market is in rude health, says Max King. Why can't Britain follow suit?
-
Prabowo Subianto: Indonesia’s Deng Xiaoping
Prabowo Subianto, like his Chinese hero, is taking power in his 70s with big ambitions for his country. Yet many view his return to politics with dread
-
Is Britain heading for a big debt crisis?
Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop