Macron Keeps Le Maire as Finance Chief in Sign of Continuity

William Horobin, Ania Nussbaum and Samy Adghirni
·4 min read
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(Bloomberg) -- French President Emmanuel Macron opted for continuity on economic policy by reappointing Bruno Le Maire as finance minister in a revamped government, prolonging a close partnership that has driven a pro-business reform agenda since the start of his presidency in 2017.

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Le Maire will also take on responsibility for energy in an expanded portfolio as France pushes to build more nuclear plants and curb fossil fuel use.

The decision came two days after Macron signaled he wanted fresh impetus in government by picking 34-year-old Gabriel Attal as the country’s youngest prime minister in modern history.

“Having responsibility for energy means having the best chance of accelerating the reindustrialization of the country and carrying out France’s nuclear program,” Le Maire told Le Figaro newspaper in an interview published after Thursday’s announcement.

Other senior figures were also kept in place, with Gerald Darmanin holding onto his job as interior minister, Sebastien Lecornu remaining defense minister and Eric Dupond-Moretti continuing at the Justice Ministry.

Still, there were some newcomers and notable departures in the list read out by Macron’s chief of staff, Alexis Kohler, on Thursday.

Stephane Sejourne, who will step down as chair of the Renew group in the European Parliament but continue to lead it in France, will replace Catherine Colonna as foreign minister. And Rachida Dati, who was justice minister in the conservative government of former President Nicolas Sarkozy, takes on the culture portfolio.

The new cabinet meets for the first time on Friday.

Macron was reelected in 2022 on a pledge to pursue the reform platform crafted closely with Le Maire. But that plan has faced mounting challenges, starting with the loss of the president’s outright majority in the National Assembly, and underscored by months of strikes and protests over a law to raise the retirement age.

Sticking with Le Maire suggests Macron is betting he can still get results and political dividends with his core economic philosophy as he looks to take on Marine Le Pen’s far-right National Rally party, whose support is surging in polls ahead of European elections in June.

“I’ll push the question of pay and salaries,” Le Maire told Le Figaro. “It’s an indispensable political issue in order to avoid the National Rally.”

The French republic’s longest-serving finance head was one of the key proponents of Macron’s other flagship overhauls, including deep cuts to corporate tax from 2018. He argued they were key to boosting investment, but faced criticism from the leftist opposition.

Attal himself served in a junior role in charge of the budget at the Finance Ministry, answering to Le Maire, before becoming education minister last year.

The finance minister will have a close ally in Attal’s inner circle as the new premier tapped Treasury head Emmanuel Moulin as his chief of staff. Le Maire described the economic heavyweight, who previously ran his cabinet, as “an exceptional colleague and loyal friend” with a total understanding of technical issues.

Le Maire has made no secret of his desire to remain in his post through several government overhauls.

Only on Monday, he invited hundreds of business leaders to the Finance Ministry to outline his priorities for more economic reforms in the coming months, just hours before Attal’s predecessor, Elisabeth Borne, resigned. Those plans included bills to cut bureaucracy and red tape for small businesses and further strengthen Paris as a global financial center.

Le Maire, who began his ministerial career under Sarkozy, also said more unpopular reforms would be needed in 2024 to cut spending and welfare benefits for the unemployed.

One of the most vocal proponents of fiscal discipline in Macron’s government, Le Maire is also preparing spending cuts to repair public finances. His reputation suffered a sting last year when Fitch Ratings downgraded France, citing wide budget deficits.

On the international stage, Le Maire has pushed Europe to strengthen industrial policy and taken an uncompromising stance on trade issues with both China and the US. During Macron’s first term, he also sparred with Washington over taxation of large US tech companies.

Le Maire is widely seen as a potential candidate for the 2027 presidential election, in which Macron won’t be able to run because legislation doesn’t allow three consecutive terms.

(Updates with Le Maire comments starting in fourth paragraph.)

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