France's president and prime minister have successfully formed a new government amidst a backdrop of economic and political turmoil. The pressing issue at hand is the need to address the country's financial woes, with a high debt-to-GDP ratio of 112% and demands from financial markets and the European Commission to reduce the deficit.
The previous government collapsed due to opposition from far-right and left-wing factions over proposed spending cuts and tax hikes in the 2025 budget plan. The new government, led by Prime Minister Bayrou and Finance Minister Lombard, faces the daunting task of navigating these challenges while ensuring economic stability.
The political landscape remains fragile, with France witnessing its fourth government in a year. The current Cabinet relies on support from center-right and center-left lawmakers, with the far-right National Rally party posing a significant threat to President Macron's administration.
Macron has vowed to see out his term until 2027, but the specter of early elections looms if the government fails to deliver on its promises. The agenda includes addressing immigration policies, bolstering military spending, and providing aid to cyclone-ravaged territories like Mayotte.
Amidst these domestic challenges, France also grapples with political instability in overseas territories like New Caledonia. The new government faces a myriad of complex issues that require deft handling and strategic decision-making to steer the country towards stability and prosperity.
