This just in from our colleagues in our Paris office: The new French government’s announcement late Friday echoes the expectations of the French people for stability and sovereignty amid global disruptions and recession anxiety.
June’s parliamentary elections are key. Macron needs a functioning majority to further push with a political agenda—aligned with his previous one as far as reforming the economy is concerned—but also addressing fear-based populism, consumer hardships and Russia’s war in Ukraine.
Prime Minister Élisabeth Borne’s government intends to address the French people’s dented spending power. The selection of Bruno Le Maire to continue as finance minister signals to French and global businesses the new government’s priority to advance the French economy in a world marked by an ever-increasing competition and strong recessionary headwinds. Le Maire will fight to support consumers’ inflation-dented spending power.
Pragmatism + Colbertism = Macronism. The government remains an important player in the economy, but it clearly intends to amplify this role if needed. This is probably what Macron intends to do in the fields of energy, tech and infrastructure. Macron’s government is keen to foster the country’s competitiveness, support innovation, welcome foreign direct investment (FDI) and revamp France’s industrial foundations to the extent they fulfill his key objectives.
Businesses can expect calls for projects, investment plans, FDI and competition scrutiny in the years to come. French and international businesses should prepare to participate and strategically engage with leading decision makers and to make their voices heard.