France's Macron meets former Socialist Cazeneuve in search of new prime minister

PARIS (Reuters) – Emmanuel Macron will meet with Bernard Cazeneuve, a former Socialist Party member and veteran politician, on Monday as the French president nears announcing the new prime minister, two sources close to Macron said.

Macron will also receive his two predecessors, socialist Francois Hollande and right-wing Nicolas Sarkozy, said the sources, who spoke on condition of anonymity.

Macron was under pressure to end weeks of political deadlock after calling new elections that resulted in a parliament without a clear majority.

Cazeneuve is increasingly being named by politicians and observers as one of the most likely candidates to lead a new government because he enjoys respect among right-wing parties, although he is also close to the left.

He left the Socialist Party two years ago in protest against its increasing ties to the radical left-wing party “La France Inspontible” (LFI).

The next French prime minister will face the daunting task of getting reforms and the 2025 budget through a parliament without a clear majority, while the European Commission and bond markets put pressure on France to reduce its deficit.

Cazeneuve not only served briefly as Prime Minister at the end of Hollande's term in office, but also held the office of Minister three times – for European Affairs, for the Budget and for the Interior.

Macron's gamble to postpone early parliamentary elections in June proved to be a mistake: his centrist coalition lost dozens of seats and no party was able to gain an absolute majority.

The left-wing New Popular Front alliance was the first to enter the race, but Macron ruled out asking it to form a government after other parties said they would reject it outright. Instead, he waited weeks before making his decision.

Even if political paralysis continued after the appointment of a new government, Macron would not be able to call early elections until July next year, according to the French constitution.

(Reporting by Elizabeth Pineau; Text by Sybille de La Hamaide and Ingrid Melander; Editing by Barbara Lewis)