06:21 AM EDT, 10/09/2025 (MT Newswires) -- French President Emmanuel Macron late Wednesday signalled that he would appoint another prime minister by Friday, noted Berenberg.

The plan now seems to bring the center-left, which in France's political spectrum prominently includes the Socialists, into the fold, instead of trying for another minority government made up of only the center and center-right, said the bank.

The Socialists may even lead the next government, pointed out Berenberg.

The new government isn't a done deal yet, stated the bank. However, even if it comes into office, it will probably not resolve France's underlying problems.

To entice the Socialists to join a coalition, the centrists will likely have to give them something -- and the main things the Socialists want at the moment are a wealth tax, a suspension of the pension reform and less fiscal consolidation overall, added Berenberg.

These policies would put further pressure on the French fiscal path, which is already unsustainable, in the bank's view. As such, France will continue to face "rocky political debates" around its government budgets for the foreseeable future.