Portugal Colonial - France's Macron to host party leaders in quest for new govt

Shutting out the far-right National Rally (RN) and hard-left France Unbowed (LFI), the effort to find a way forward comes as caretaker ministers scramble to clarify France's 2025 finances, after the previous administration fell over its cost-cutting budget plans.

"The aim is to move forward with a deal about a method" to build a new government on the unstable foundations of a hung parliament, people close to Macron said late Monday.

Barnier had been supported by conservative Republicans and Macron's centrist camp, but the shaky alliance was far short of an overall majority in a National Assembly split three ways with the NFP left alliance and the RN.

It is unclear how leaders could build a broader base of support for any new government.

Most are unwilling to compromise on pet issues such as last year's unpopular pension reform, or to tarnish their image with voters by compromising ahead of potential new elections next year.

"We will not participate in a government of 'national interest' with the Republicans or Macronists or whoever," Greens party leader Marine Tondelier said Monday -- a position mirrored by Republicans chief Laurent Wauqiez.

In a letter late Sunday, Socialist leaders told Macron they were open to "dialogue and pitting points of view against one another" to "find an exit from this deadlock situation that's harmful to the French public".

But they added that they would not join a technocratic government or one run by a prime minister from the right, and called for "a true change of political course" on "pensions, purchasing power and tax justice".

- Taxes and borrowing -

Bringing so many parties together around one table marked progress from Macron's first attempt to reach consensus after July's snap election, commentator Guillaume Tabard wrote in conservative daily Le Figaro.

"But if even a minimal deal is to be found ranging from the Republicans to the Communists, it will require an enormous labour of negotiation that will take days or weeks," he added.

"The promise to quickly replace Barnier, yet again issued with confidence, will once again be betrayed."

In an apparent acknowledgement that progress will be slow, Macron's office said that a special budget law to allow the French state to keep functioning would be presented to caretaker ministers Wednesday on its way to parliament.

Its three measures include authorising the government to continue raising existing taxes until a new budget is passed by MPs, a ministerial source told AFP.

The state and the social security system will also be allowed to continue borrowing on financial markets to avoid any interruption of payments, the source added.

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F.Cardoso--PC