French central bank succession fight tests Macron’s sway ahead of 2027 election
by Elizabeth Pineau and Leigh Thomas
PARIS, May 14 (Reuters) – French President Emmanuel Macron faces a test next week when lawmakers will decide whether to approve his former chief of staff to run the central bank. Some critics say the nomination is part of a campaign to protect key institutions from a possible far-right election victory in 2027.
Rejection of Emmanuel Moulin would represent an embarrassing defeat and underline the unpopular president’s lame duck status with less than a year left in his second term.
The confirmation, meanwhile, is likely to fuel accusations from rivals that Macron is appointing loyalists to senior posts who could secure his legacy and guard against a possible National Rally (RN) victory in the next presidential election.
“The president is right to propose (Moulin’s) appointment, technically he is right, but he is taking a political risk if the proposal is rejected by parliament, given that he no longer has the majority,” said political analyst William Thay of think tank Le Millenaire.
MOULIN IS AN EXPERIENCED ECONOMIC POLICY MAKER
Opponents on both chambers’ finance committees could block Moulin on Wednesday if three-fifths vote against it. The votes in both chambers will be tallied and if the no votes do not exceed 60% of the total, Moulin will be approved.
The composition of the committees mirrors the structure of the two chambers, with 72 members in the lower house committee and 49 members in the Senate. Macron and his allies do not have a majority in either house.
While resistance is expected in the combative lower house committee, the Senate committee dominated by conservative Republicans will be decisive. Some lawmakers warn that the margin could be narrow because of possible defections among the Republicans whose support Moulin needs.
Few would dispute that Moulin is one of the most experienced policymakers in France’s economic structure.
But Macron’s move has sharpened scrutiny on its independence, a sensitive issue for a central banking post meant to be insulated from politics.
“Have you ever seen an Elysee chief of staff take over the Bank of France? This has never happened,” said Eric Coquerel, the far-left chairman of the finance committee in the lower house.
CENTRAL BANK INDEPENDENCE PROBLEM
Coquerel said most left-wing parties in the lower house will oppose Moulin, but the Socialists have not yet determined their positions, while non-Macron centrists may split.
There is precedent for such a candidacy. Macron’s predecessor, François Hollande, appointed his private secretary, Pierre-Rene Lemas, as head of public lender Caisse des Depots, one of France’s largest financial institutions, in 2014.
Moulin will face question-and-answer sessions in both chambers on Wednesday before the committees vote. The Senate session will be closed to the press, and the lower chamber has not said whether it will be open.
Socialist lawmaker Philippe Brun said Moulin had agreed to meet with colleagues on a range of priorities, from banking regulation to fighting inflation and independence.
In a questionnaire sent to Moulin on Friday, Brun asked: “Given your recent political roles within the government, how can the independence of the Bank of France be guaranteed?”
Contacted by Reuters, Moulin said he would reserve his answers for MPs. Brun did not immediately respond to a request for comment on how Wednesday’s meeting with Moulin went.
DISTANCE RIGHTS SAY ‘ENOUGH IS ENOUGH’
As governor of the 226-year-old Bank of France, Moulin will sit on the European Central Bank’s interest-setting governing council and be responsible for regulating French banks.
Even before nominating Moulin, Macron’s rivals were upset that he had appointed allies such as Richard Ferrand to head the constitutional court that will review the legislation and Amelie de Montchalin to head the audit office that certifies public accounts.
RN MPs say the candidacies are aimed at engaging anti-RN allies if they come to power in next year’s presidential election.
“After Ferrand and Montchalin, we will say enough is enough,” said RN MP Philippe Ballard.
Polls show that it is almost certain that the anti-immigrant RN, which has vowed to dismantle much of Macron’s social and economic legacy, will come to the fore in the second round of next year’s presidential election.
Ferrand was approved by a single vote in both houses’ legal committees last year, while RN MPs abstained; Montchalin’s appointment did not require parliamentary approval.
The Senate will be key for Moulin, who served in both conservative and Macron administrations and has doubts about whether some Republicans will break ranks to oppose his nomination.
“Republican MPs are certain to be divided between those who believe it is better to maintain a respectable profile on the right and those who want to punish the betrayal of one of their own who abandoned them to serve Macron’s camp in 2017,” Thay said.
(Reporting by Elizabeth Pineau; Additional reporting and Writing by Leigh Thomas; Editing by Alison Williams)
