From May 14, 1981, to January 26, 1982, Eagleburger was Assistant Secretary of State for European Affairs. In 1982, Reagan appointed him as Undersecretary of State for Political Affairs (the State Department's third-ranking position), a position he held for several years. He then became president of Kissinger Associates, a consultancy firm which provided firms with advice on international politics. In 1989, President George H. W. Bush appointed him Deputy Secretary of State (the Department's second-ranking position); he also served as the President's primary advisor for affairs relating to the quickly disintegrating Yugoslavia. On August 23, 1992, James Baker resigned as Secretary of State (to manage Bush's unsuccessful re-election campaign), and Eagleburger served as Acting Secretary of State until Bush gave him a recess appointment for the remainder of the Bush administration.