French PM names new govt with eye on budget

France unveiled a new government on Dec. 23 composed of former ministers and senior civil servants that Prime Minister Francois Bayrou hopes can oversee the passage of a 2025 budget and prevent a deepening of the country's crisis.

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Mr. Eric Lombard, 66, head of Caisse des Depots (CDC), the investment arm of the French government, became Finance Minister, working with Ms. Amelie de Montchalin as Budget Minister.

They will need to begin work immediately with Mr. Bayrou on passing a 2025 budget bill after parliamentary pushback over the proposed legislation led to the toppling of Mr. Bayrou's predecessor Michel Barnier.

Mr. Bayrou's new team will be under immediate pressure to slim down a deficit expected to end the year at above 6 per cent of gross domestic product.

Parliament is in recess until Jan. 13. Once lawmakers return, however, Mr. Bayrou and his team will likely be living day-to-day, under the constant threat of no-confidence motions.

President Emmanuel Macron will hope Mr. Bayrou can stave off no-confidence votes until at least July, when France will be able to hold a new parliamentary election.