Macron Appoints New Finance Minister Eric Lombard Amid Budget Turmoil

French President Emmanuel Macron appointed a new finance minister, veteran financial professional Eric Lombard, as part of a new cabinet whose mission is to somehow navigate the nation’s seemingly intractable political turmoil. Lombard, 66, currently heads the Caisse des Depots Group, a two-century old institution that answers to parliament. He’s now tasked with urgently repairing the country’s finances following the collapse of the previous administration in a battle over next year’s budget. French premier Francois Bayrou’s government will aim to quickly pass a 2025 budget and survive any no-confidence motions. It’s been a big mess in France since June when Macron dissolved the National Assembly and called for a snap election. The vote didn’t go the way he had hoped, returning a lower house split among three feuding blocs: the leftist New Popular Front alliance, centrists that largely support him and the ascendant far-right National Rally under Marine Le Pen. France’s political and budget difficulties have sparked selloffs in the country’s debt in recent months, driving up its borrowing costs compared to European peers. Bayrou has said he aims to finalize the budget by mid-February.

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The European Central Bank is set to crack down on lenders that are slow to deal with mandated reforms as the regulator grows frustrated with a perceived lack of responsiveness. The ECB has averaged more than 5,000 supervisory measures a year since it started overseeing the euro region’s top banks in late 2014. But financial institutions have at times been slow to respond to the watchdog’s demands, creating a backlog the ECB is now trying to reduce. And 2025 may bring even harsher admonitions for lackadaisical banks.