FRANÇOIS BAROIN, a protege of Jacques Chirac and France’s current budget minister, has been named as Christine Lagarde’s successor at the finance ministry.
Mr Baroin (46) takes on one of the most prominent roles in cabinet at a daunting time, with France centrally involved in efforts to contain the euro-zone debt crisis while managing its presidency of the G20. There is less than a year to go before a presidential election in which economic issues are expected to dominate.
France is battling to trim its public deficit and hold on to its coveted AAA debt rating despite a sluggish rebound from the economic crisis two years ago.
Mr Baroin, whose youthful air once earned him the nickname “Harry Potter”, has long coveted the finance ministry post and was reported to have threatened to quit the government on Tuesday night if he did not get the job.
As budget minister, he successfully managed controversial dossiers such as wealth tax reform, the reduction in the number of civil servants and the abolition of President Sarkozy’s controversial tax cap for the rich.
He is regarded as a centre-right traditionalist, heavily influenced by Mr Chirac, and has consensual instincts. His ambitions have created tensions with Ms Lagarde, and critics say his lack of international experience and weak command of English will hinder him.
Mr Baroin’s appointment is unlikely to signal a major shift in French economic policy, the themes of which are set by the Élysée Palace.
On Ireland’s efforts to secure a lower interest rate on its bailout loans, he has generally repeated Mr Sarkozy’s view that corporate tax should be one of the means Dublin uses to reduce its deficit.
Mr Baroin is familiar with the debate over Ireland’s corporate tax rate. He hinted at a softening in the French position earlier this month by saying that while France “eventually” wanted to see tax harmonisation in the EU, it would take into account Ireland’s “singular situation”. Intensive talks between French and Irish officials aimed at resolving the standoff began around the same time.
Mr Sarkozy’s office said Valérie Pécresse (43), a minister for higher education with a solid academic profile, would replace Mr Baroin as both budget minister and government spokeswoman.
Amid signs that the ruling centre-right UMP coalition is fracturing as a result of the government’s attempts to win back ground from the far-right National Front, Mr Sarkozy has been keen to promote young or centrist-leaning members of his party.
Both Mr Baroin and Ms Pécresse are identified with Mr Chirac and are thought to appeal to younger, more moderate voters.
Mr Sarkozy had been considering agriculture minister Bruno Le Maire for the finance minister position. Mr Le Maire (42) is a former adviser to Mr Sarkozy’s rival, Dominique de Villepin, and has won praise for his handling of the farming brief.
French media said Mr Baroin’s promotion was sealed following a stormy meeting late on Tuesday over whether he or Mr Le Maire should get the job. Promoting Ms Pécresse has allowed Mr Sarkozy to put a woman back in a high-profile job, having lost several from his cabinet in recent months.