Following political turmoil, France's Macron appoints centrist Bayrou as new prime minister.

• On Friday, Emmanuel Macron, the French President, appointed Francois Bayrou as his new prime minister, ending a week of political stalemate after the resignation of Michel Barnier's government.
• The decision on Macron's successor was twice delayed, indicating the country's political stalemate, a day after Barnier's departure.
• The new government will face pressure from both the left and right to fulfill their respective agendas for the 2025 budget.

On Friday, Emmanuel Macron appointed Francois Bayrou as his new prime minister, amid political uncertainty following the fall of Michel Barnier's government last week.

This year, France has had its fourth prime minister due to the resignation of Barnier on December 5, following a historic no-confidence vote that brought together opposition parties on the left and far right.

The veteran politician, who founded the Democratic Movement in 2007 and has been a longtime ally of Macron, will now lead a new government in France after being elected as its leader.

The president delayed the announcement of a successor for Barnier, indicating the country's political stalemate, and missed a self-imposed deadline he set at a meeting with party leaders.

The recent inconclusive legislative elections and the ongoing divisions over the French deficit have caused a delay in French politics, which reflects a wider turmoil.

In June and July, Macron held snap elections in an attempt to strengthen his centrist alliance's position in the National Assembly, but ultimately saw a significant reduction in power.

The no-confidence vote last week, which followed weeks of debate over the 2025 budget plans, resulted in the NFP and RN supporting a motion against the government of Barnier. This was the first time a French government has been ousted since 1962.

Elisabeth Borne was succeeded by Barnier as France's prime minister in January, making him the youngest in modern history.

The new government will face pressure from both the left and right to fulfill their respective agendas for the 2025 budget.

Le Pen called on Bayrou to listen to the opposition in order to create a "reasonable and thoughtful budget," according to a Google translation. Bardella stated that the party's policy "red lines" remain, as reported by Reuters.

According to a Google translation, Fabien Roussel, the leader of the Communist Party, stated on social media that Bayrou's appointment was a "bad idea" and questioned whether the incoming prime minister would continue to push policy "that has failed and been punished."

The National Rally seeks to increase pensions, abolish planned cuts to medication reimbursements, and decrease contributions to the EU budget, while the New Popular Front advocates for increasing public spending and imposing higher taxes on super-profits and the wealthy.

It is predicted that France's major political parties will likely approve a provisional budget for 2024, which will essentially extend the current budget into the next year. This will prevent any potential government shutdown in the new year, as France will continue to meet its financial obligations.

If measures are not taken to curb spending, France's budget deficit is predicted to surpass 6.1% of GDP in 2024, further exacerbating the country's fiscal problems.

Currently, investors are cautiously viewing France, as the yield on France's benchmark 10-year government bond increased by 5 basis points to approximately 3.01% following the announcement, which is slightly higher than earlier in the session. At the same time, the French CAC 40 slightly decreased to trade up 0.12%.

— CNBC's Holly Ellyatt contributed to this report.