New French Prime Minister Named Michel Barnier, Former EU Brexit Negotiator

• The aim of the announcement is to put an end to the ongoing political conflict and resolve the hung parliament situation.
• Before assuming governance, the 73-year-old conservative will face a no-confidence vote in the lower house of parliament.

In an effort to resolve the political impasse that has afflicted France since July, President Emmanuel Macron has appointed Michel Barnier, the former EU Brexit negotiator, as prime minister.

On Thursday, Barnier was tasked with establishing a government by Macron, as announced by the Elysee Palace.

Before assuming governance, the 73-year-old conservative will face a no-confidence vote in the lower house of parliament.

The announcement aims to put an end to the ongoing political conflict and resolve the hung parliament resulting from the July 7 run-off vote, where the left-wing New Popular Front coalition won unexpectedly. Macron's centrist "Together" bloc finished in second place, while the far-right Rassemblement National came in third.

The 289 seats needed for an absolute majority were not achieved by any faction in France, resulting in a caretaker government during the summer Olympics, which were heavily attended.

On July 16, former Prime Minister Gabriel Attal resigned, and Macron accepted his resignation.

Barnier has held four cabinet positions in France, including minister of the environment, minister of state for European Affairs, minister of foreign affairs, and minister of agriculture and fisheries.

This breaking news story is being updated.

— CNBC's Charlotte Reed contributed to this report.