Reports: New French premier clashes with Macron's centrist camp

Newly appointed French Prime Minister Michel Barnier has clashed with President Emmanuel Macron's centrist camp over tax increases, according to French media reports on Wednesday.

The disagreement centres around Barnier's consideration of tax hikes, a departure from the previous government's stance.

Barnier, a former EU commissioner, cited the dire state of public finances as justification for his proposal, which has received criticism from within Macron's camp.

"The country's budgetary situation, which I am now discovering, is very serious," Barnier told French media. "This situation requires more than small talk. It demands responsibility."

The political landscape in France remains unstable following the recent snap parliamentary elections, which failed to produce a clear majority or coalition capable of forming a government.

President Macron appointed Barnier as prime minister two weeks ago with plans to present a new Cabinet this week.

Barnier's predecessor, Gabriel Attal, who took over the group presidency of Macron's centre camp, had demanded a meeting with Barnier to discuss Barnier's policy direction.

However, reports indicate that this meeting was abruptly cancelled on Wednesday morning.

Interior Minister Gérald Darmanin also expressed reservations regarding Barnier's proposed tax increases targeting higher earners and corporations.

Meanwhile, the European Commission has initiated deficit procedures against France due to rising new debt levels, making the goal of reducing borrowing below the EU-mandated 3% threshold increasingly unlikely.

France currently faces a public debt equivalent to 110% of its gross domestic product (GDP), placing it among the weakest economies in the eurozone.