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Mr Philippe, 46, is not from the president's new centrist party but from the
centre-right Republicans.
The choice is seen as an attempt to draw in key figures from both the right and
left of French politics.
The announcement forms part of a busy first day for the president - he is due
to meet Chancellor Angela Merkel in Berlin.
The naming of a new prime minister, Mr Macron's first big appointment, came
after hours of fevered speculation in France and a day after he was
inaugurated as president.
Already tipped as favourite for the job, Edouard Philippe, mayor of the
northern port city of Le Havre, has long been close to Alain Juppé, who was
runner-up in the race for the Republican presidential nomination in November
2016.
For years he has been seen as Alain Juppé's right-hand man and backed his
unsuccessful 2016 bid to secure the centre-right presidential nomination. He
quit the Republican campaign when the chosen candidate, François Fillon, was
engulfed in a "fake jobs" investigation.
Before he became mayor of Le Havre, he worked in the private sector and co-
wrote a political thriller with Gilles Boyer, who went on to run the Juppé
campaign.
President Macron faces crucial parliamentary elections next month and may
need the support of the centre right to push through his planned economic
reforms.
"The election of the new French president offers us here the possibility to
bring dynamism into the development of Europe," Mrs Merkel said on
Monday.
However, she was cautious on his plans for reforming the eurozone.
"There are many proposals which have been on the table for years," she told
reporters. "Of course, I will discuss this with him and I will say let's be open, so
we can achieve things together, not get stuck on what can't be done."
A finance ministry spokeswoman was less diplomatic about the chances of
progress on eurozone reform, pointing out it would require treaty change
"which is at the moment not realistic".
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