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France's Macron reappoints Lescure as finance minister amid budget turmoil

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  Published in Business and Finance on Sunday, October 12th 2025 at 18:34 GMT by ThePrint

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Attempt to fetch the URL.France’s long‑running economic crisis has taken a new turn as President Emmanuel Macron announced the reappointment of his finance minister, Bruno Le Maire, on a day when the country’s budgetary situation was under intense scrutiny. The decision, which was announced in a televised address on Sunday evening, signals a continuation of Macron’s fiscal strategy amid a mounting deficit and looming European fiscal constraints.

The backdrop: a ballooning deficit and EU fiscal rules

France’s public debt has been rising for years, and the current fiscal year has seen an estimated deficit that could exceed 10 % of GDP – well above the European Union’s 3 % ceiling. Economists warn that if the trend continues, the French economy could face a “sustainability crisis” that would trigger a costly European Commission investigation and potential sanctions. Macron has repeatedly said that the budget must be brought back into line before the next presidential election, and the government has proposed a range of austerity and growth‑boosting measures aimed at trimming the deficit by roughly 2 % of GDP next year.

Why Le Maire’s return matters

Bruno Le Maire, who has served as finance minister since 2017, is widely regarded as a pragmatic, market‑friendly technocrat. He was briefly seen as a possible target of the opposition during the June 2023 snap elections, when left‑wing parties in the National Assembly pressed for his resignation over perceived excesses in the pension reform and the handling of the public debt. Despite pressure from the new government coalition, Le Maire remained in the role until a formal announcement was made on Sunday. His re‑appointment signals to investors and the European Commission that France is committed to a steady, predictable fiscal path.

Policy priorities in the new mandate

In his speech, Macron outlined a three‑fold agenda that Le Maire will now lead:

1. Deficit reduction – By cutting public spending by €25 billion over the next two years, the government plans to meet the EU’s deficit target. This includes a €10 billion cut in state subsidies and a €7 billion reduction in civil service wages.

2. Tax reform – A new corporate tax scheme that will lower the top marginal rate from 33 % to 28 % is on the agenda, intended to stimulate investment. The measure also includes a tax credit for research and development, which is estimated to generate €15 billion in new revenues over five years.

3. Economic growth initiatives – Le Maire will push for a “growth pact” with the European Union that focuses on green infrastructure, digital transformation, and the modernization of France’s industrial base.

Opposition and coalition politics

The announcement was met with mixed reactions. While the right‑leaning National Rally party welcomed the fiscal discipline, the newly formed left‑wing coalition of the New Ecologic and Social People's Union (NUPES) criticized the austerity measures as “anti‑citizen” and called for a “progressive” approach that would also address income inequality. NUPES spokesperson, Marie‑Claire Blais, urged the government to “balance the books while safeguarding social cohesion.”

Meanwhile, members of the Senate – particularly from the centrist Democratic Movement – expressed concern over the pace of the deficit cuts, suggesting that too rapid a reduction could hurt employment. “We need a realistic timetable that protects jobs while addressing the fiscal deficit,” said Senator Jean‑Philippe Duquesne.

European implications

The European Commission is expected to review France’s fiscal plan in the coming weeks. The Commission’s finance commissioner, Mairead McGuinness, had previously warned that France would face a “potentially costly investigation” if it fails to meet the EU’s deficit threshold. Macron’s decision to keep Le Maire at the helm is likely an attempt to reassure Brussels that France’s fiscal policy will remain coherent and compliant with the Stability and Growth Pact.

The French government’s plan also aligns with the EU’s “Green Deal” and the European Structural and Investment Funds (ESIF). By earmarking part of its fiscal cuts toward green projects, France hopes to satisfy both the fiscal watchdog and its commitment to climate goals.

Looking ahead

The reappointment of Bruno Le Maire is a clear signal that Macron intends to continue his current fiscal strategy without significant deviation. The next few months will be critical: the finance ministry will need to navigate the delicate balance between deficit reduction and social spending, maintain investor confidence, and avoid a crisis that could trigger an EU investigation.

Observers will be watching for the implementation of the proposed tax reforms, the pace of spending cuts, and the political reaction within France’s fragmented parliament. The decision to keep Le Maire in place demonstrates Macron’s determination to enforce fiscal discipline, but it also underscores the challenges that come with governing a country where economic policy is a polarizing issue.

In a country where public opinion has turned increasingly skeptical of austerity, the next budget cycle will test the resilience of France’s political coalition and the effectiveness of Le Maire’s technocratic approach to fiscal management. Whether the balance can be struck between sound economics and social fairness remains to be seen, but the reappointment marks a pivotal moment in France’s ongoing battle with its fiscal deficit.