Political Instability Deepens as France Installs Fourth Government of 2024

France unveiled its fourth government of 2024 on Monday, as newly appointed Prime Minister François Bayrou faces immediate challenges including potential no-confidence votes and pressing budget negotiations amid ongoing political turmoil.

The 34-member cabinet announcement comes in the wake of Michel Barnier's brief tenure, which ended after less than three months when he attempted to pass the social security budget without parliamentary approval. The new administration maintains several key ministers while bringing back familiar faces to critical positions.

Eric Lombard, 66, formerly head of France's state investment arm Caisse des Depots and ex-BNP Paribas banker, steps into the crucial role of finance minister. He will collaborate with Amélie de Montchalin, the budget minister, to address France's growing deficit, which has reached 6.2% of GDP – double the permitted level under EU rules.

In a notable development, Elisabeth Borne, who resigned as Prime Minister in January, returns to the cabinet as education minister. Other key appointments include Gerald Darmanin moving to justice minister, Bruno Retailleau maintaining his position as interior minister, and Jean-Noel Barrot continuing as foreign minister. Manuel Valls, who previously served as prime minister under François Hollande, joins as overseas territories minister.

The political landscape remains fractured following President Emmanuel Macron's unsuccessful attempt at snap elections earlier this year, resulting in a parliament divided between three rival blocs. Socialist Party leader Olivier Faure criticized the new government harshly, describing it as "a provocation" with "the extreme right in power under the watchful eye of the extreme right."

Public opinion appears skeptical of the new administration, with a December 19 poll showing 64% of respondents dissatisfied with Bayrou's appointment. His efforts to form a broader coalition have met with limited success, as both Socialist and Communist parties declined to participate in his cabinet.

The government faces its first major test on January 14, when Bayrou delivers his inaugural policy speech to the National Assembly. The hard-left France Unbowed party has already announced plans to file a no-confidence vote.

Financial markets have responded negatively to the political uncertainty, with Moody's downgrading France's credit rating following Bayrou's appointment. The agency cited "political fragmentation" as a key concern and projected continued deficit growth in the coming year.

The new administration must secure approval for a budget by mid-February, navigating between financial market pressures and European Commission demands for reduced spending while avoiding the parliamentary opposition that led to the previous government's collapse.

With the National Assembly in recess until January 13, Bayrou's team has a brief window to prepare before facing potential no-confidence motions. President Macron hopes to maintain governmental stability until at least July, when France will have the opportunity to hold new parliamentary elections.