France’s New Prime Minister Seeks Broad Consensus Amidst Political Uncertainty

France’s newly appointed Prime Minister, François Bayrou, initiated a series of meetings Monday with various political factions in an attempt to forge a working government following the collapse of Michel Barnier’s administration, Blloomberg reports.

The meetings come amidst concerns over France’s weakening finances and political gridlock, following a downgrade of the country’s credit rating by Moody’s.

Bayrou’s first meeting was with far-right National Rally leader Marine Le Pen, a key figure in the fragmented Parliament where no single group holds a majority. While Le Pen expressed a degree of optimism regarding Bayrou’s approach, she remained cautious about the overall usefulness of the talks. She confirmed that her concerns were heard, highlighting Bayrou’s commitment to treating all parliamentary groups equally.

The meeting with Le Pen underscores her growing political influence. July’s snap elections left Parliament deeply divided, creating an urgent need for government formation and budget approval, particularly in light of Moody’s downgrade, which cited France’s weak finances and political stalemate. The yield premium on French 10-year government bonds widened slightly following the downgrade, reflecting increased market risk.

Bayrou’s consultations also include meetings with Gabriel Attal (head of Macron’s party), Socialist Party leaders, and representatives from the center-right Republicans. Le Pen’s party previously supported a no-confidence vote against Barnier, fueled by disagreements over deficit reduction and Macron’s pension reforms. Le Pen has indicated a willingness to cooperate, provided the government adopts a less aggressive approach to fiscal austerity.

The political landscape is further complicated by disagreements among left-leaning parties regarding Barnier’s hardline immigration policies. The Socialists and Green Party are pushing for a softer approach, while the Republicans advocate for retaining Barnier’s interior minister, Bruno Retailleau.