France’s Macron to host party leaders in quest for new govt

French President Emmanuel Macron welcomes a guest at the Elysee Palace in Paris, France, December 9, 2024. (Reuters)
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Updated 10 December 2024
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France’s Macron to host party leaders in quest for new govt

PARIS: French party leaders will gather at President Emmanuel Macron’s Elysee Palace office Tuesday afternoon in a bid to chart a route toward a new government, days after Prime Minister Michel Barnier was toppled in a confidence vote.
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.”

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 labor 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 authorizing 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.


Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

Updated 23 December 2025
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Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

  • Deal will mean US tariffs on Indonesian products are cut from a threatened 32 percent to 19 percent
  • Jakarta committed to scrap tariffs on more than 99 percent of US goods

JAKARTA: Indonesia expects to sign a tariff deal with the US in early 2026 after reaching an agreement on “all substantive issues,” Jakarta's chief negotiator said on Tuesday.

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto met with US trade representative Jamieson Greer in Washington this week to finalize an Indonesia-US trade deal, following a series of discussions that took place after the two countries agreed on a framework for negotiations in July.

“All substantive issues laid out in the Agreement on Reciprocal Trade have been agreed upon by the two sides, including both the main and technical issues,” Hartarto said in an online briefing.

Officials from both countries are now working to set up a meeting between Indonesian President Prabowo Subianto and US President Donald Trump. 

It will take place after Indonesian and US technical teams meet in the second week of January for a legal scrubbing, or a final clean-up of an agreement text.

“We are expecting that the upcoming technical process will wrap up in time as scheduled, so that at the end of January 2026 President Prabowo and President Trump can sign the Agreement on Reciprocal Trade,” Hartarto said.  

Indonesian trade negotiators have been in “intensive” talks with their Washington counterparts since Trump threatened to levy a 32 percent duty on Indonesian exports. 

Under the July framework, US tariffs on Indonesian imports were lowered to 19 percent, with Jakarta committing to measures to balance trade with Washington, including removing tariffs on more than 99 percent of American imports and scrapping all non-tariff barriers facing American companies. 

Jakarta also pledged to import $15 billion worth of energy products and $4.5 billion worth of agricultural products such as soybeans, wheat and cotton, from the US. 

“Indonesia will also get tariff exemptions on top Indonesian goods, such as palm oil, coffee, cocoa,” Hartarto said. 

“This is certainly good news, especially for Indonesian industries directly impacted by the tariff policy, especially labor-intensive sectors that employ around 5 million workers.” 

In the past decade, Indonesia has consistently posted trade surpluses with the US, its second-largest export market after China. 

From January to October, data from the Indonesian trade ministry showed two-way trade valued at nearly $36.2 billion, with Jakarta posting a $14.9 billion surplus.