KaiTou Macro: The new French Prime Minister has a heavy responsibility ahead.

On December 13, Jack Allen-Reynolds, an analyst at Capital Economics, wrote in a note to clients that France’s new prime minister will face a difficult task if he wants to form a government and solve the country’s troubled fiscal problems. Veteran centrist politician François Berou, who was appointed prime minister by President Emmanuel Macron on Friday, must now form a government after his short-lived predecessor, Michel Barnier, tried to force budget legislation and was overthrown by the National Assembly. Belu could face the same battle. “It seems unlikely that the government will and be able to solve France’s fiscal problems,” Reynolds said. "France’s budget deficit this year will widen further, further beyond what the European authorities consider tolerable.