Éric Lombard, the current director general of the Caisse des Dépôts (CDC), was appointed on Monday Minister of Economy and Finance in the Bayrou government. By accepting this position refused by several executives, it is said, the former banker and insurer is embarking on a difficult mission. Namely to restore the finances of France, whose deficit will reach 6.2% of GDP in 2024.
After almost two weeks of waiting, the new Prime Minister François Bayrou unveiled his first government on Monday December 23. This is made up of 34 ministers in total, including 17 full ministers and 17 delegate ministers. Among these are two former tenants of Matignon, Élisabeth Borne at the Ministry of National Education, and Manuel Valls at the Ministry of Overseas Territories.
Bayrou bets on Eric Lombard at Bercy
We also find in the list Gérald Darmanin (Minister of State, Minister of Justice), Bruno Retailleau (Minister of State, Minister of the Interior), Jean-Noël Barrot (Minister of Europe and Foreign Affairs) , Sébastien Lecornu (Minister of the Armed Forces), Rachida Dati (Minister of Culture) and Catherine Vautrin (Minister of Labor, Health, Solidarity and Family). All are regulars in the executive branch. But there are also some new faces, including Éric Lombard, appointed Minister of Economy and Finance in the Bayrou government.
Éric Lombard neither politics nor enarque
Éric Lombard takes over from Antoine Armand, tenant of Bercy in the short-lived Barnier government. He was currently Director General of the Caisse des Dépôts (CDC), after having been an insurer and banker in particular. He is one of the rare bosses to become Minister of the Economy and Finance. Before him, under Jacques Chirac, there was Francis Mer, former factory boss, and Thierry Breton. All the others were politicians or enarques. In terms of experience in the executive, Éric Lombard has only been an advisor to the cabinet of left-wing finance ministers like Michel Sapin.
Eric Lombard has proven himself as a boss
But at the CDC, Éric Lombard had several successes, such as the creation of the Banque des Territories, the disaster recovery of Orpea (now Emeis) and the merger between CNP Assurances and Banque Postale. So he's an emergency leader. However, there is no comparison between getting businesses back on their feet and lifting the economy of a country in difficulty. Indeed, France currently has a large deficit, which should reach 6.2% of GDP this year, while the public debt amounts to 3,300 billion euros. Huge !
France will borrow 300 billion euros
The situation is so complicated that Paris is preparing to become the largest borrowing country on the markets in 2025, with 300 billion euros in loans planned (nearly 12% of its GDP). It's more than Italy. Only Greece suffered from a much worse condition. To limit the damage, Éric Lombard will have to make a choice: reduce spending or increase taxes. While the budget is still awaited, François Bayrou would rather lean towards a reduction in spending. Brussels will observe all this with a severe eye.
