Eric Lombard Appointed France’s Economy Minister Amid Deficit Challenges

The former banker takes on the task of reducing France's deficit while balancing growth and political divisions.

Eric Lombard, a seasoned banker and former head of the Caisse des Dépôts, has been named France’s new Minister of Economy and Finance under Prime Minister François Bayrou.
Lombard’s primary challenge is to address France’s significant budget deficit, which stands at 6.2% of GDP, double the EU's allowable limit, while maintaining economic growth.
The appointment follows the collapse of Michel Barnier’s government and the rejection of his 2025 budget proposal, leaving France reliant on a provisional budget carried over from 2024.
Known for his pragmatic and financially skilled approach, Lombard has expressed a commitment to social justice and income redistribution, aligning with his left-leaning political stance despite his private sector background.
The new minister faces a politically fragile coalition and pressures from both the EU and financial markets to deliver a credible budget by mid-February 2025.