French defence minister Goulard resigns as party investigated

Sylvie Goulard, France’s defence minister, has resigned from President Emmanuel Macron’s government a month after her appointment because of an investigation into the misuse of European parliamentary funds in her party.

The decision follows the French president’s decision on Monday to sideline Richard Ferrand, regional cohesion minister, who is also under investigation in a case involving allegations of nepotism.

The departures have overshadowed the start of the 39-year-old French leader’s term of office after he campaigned on a promise of raising ethical standards in politics. Another consequence is that an intended modest government reshuffle after Mr Macron’s landslide victory in legislative elections at the weekend has been turned into a broader shake-up ahead of potentially contentious economic reforms.

Ms Goulard is a former member of the European Parliament, and is currently a member to the centrist Modem party, which is supporting Mr Macron. She said on Tuesday that she wanted to be free to defend her work as an MEP in “good faith”.

The probe is focused on the misuse of party funds in the hiring of parliamentary assistants.

“The defence ministry is a demanding portfolio. The honour of our armies, that of the men and women who serve and put their lives in danger should not be mixed up in controversies that have nothing to do with them,” the 52-year-old Ms Goulard said in a statement. “The president has undertaken to restore confidence in public office, to reform France and to revive Europe. This reorganisation must take precedence over any personal considerations.”

Her resignation will raise questions about the prospects of two other ministers in Mr Macron’s first cabinet — François Bayrou, Modem’s leader and justice minister, and Marielle de Sarnez, EU affairs junior minister. They are also involved in the same probe into alleged misuse of funds.

Mr Ferrand, 54, a former Socialist MP and an early supporter of Mr Macron, is being investigated over allegations he helped his partner buy a property when he was head of a non-profit insurance group in Brittany, and employed his son as a parliamentary aide.

Mr Macron has vowed to clean up French politics, promising a “moralisation bill” that will ban politicians from employing members of their family as staff and disclose all personal interests when in office.

It follows high-profile French political scandals, including an embezzlement probe into former favourite for the presidency, centre-right candidate François Fillon.

The suspicion surrounding key members of Mr Macron’s government is unwelcome as the president is about to embark on a series of complex reforms, including a bill to make the jobs market more flexible.

In theory, Mr Macron would be able to govern without the Modem party. His La République En Marche party won 308 seats in the National Assembly, more than the 290 needed for a majority.

But most of Mr Macron’s MPs are politically untested novices and the French president may want to avoid alienating the Modem party, which secured 42 seats.

Edouard Philippe, prime minister, is expected to announce the composition of the new government on Wednesday. Mr Macron won the presidency in May.