In the new parliament, he had been set to head the economic committee in the lower house until Barnier tapped him for the top job at the powerful Ministry of Economics and Finance. Armand is no stranger to "Bercy" as the ministry is often called in France,

PARIS (Reuters) -French President Emmanuel Macron's chief of staff announced the formation of a new government on Saturday, hoping to put an end to 2-1/2 months of political uncertainty following an inconclusive snap election that delivered a hung parliament.

The new cabinet pulls in allies from the centre and right, despite left-wing parties winning France's election.

The government still faces two challenges in the coming weeks: the risk of a no-confidence vote and a tight budget deadline.

French President Emmanuel Macron appointed Antoine Armand as finance minister, thrusting a 33-year-old with limited political experience into an urgent budget battle in which he must maintain tacit support from the far right to avoid government collapse.