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President of the Centrist Union Senate group since 2002, he remained faithful to François Bayrou by joining the MoDem. On 30 January 2008, Michel Mercier, by favouring an alliance with the UMP in Lyon, whose list was led by Dominique Perben for the 2008 municipal elections signaled his disagreement with the strategy of François Bayrou by resigning the presidency of the MoDem in Rhône. He remained MoDem treasurer and member of the executive board of the MoDem until his appointment to the government.
On 23 June 2009, he joined the government of François Fillon as Minister of Rural Areas and Spatial Planning. He announced his hiatus from the MoDem and was replaced as treasurer by Jean-Jacques Jégou.
From 14 November 2010 he was Minister of justice in the 3rd government of François Fillon.