French Finance Minister Bruno Le Maire has issued a warning regarding the potential for a financial crisis in France if the far right were to win snap elections in the near future. Currently, Marine Le Pen’s eurosceptic National Rally (RN) is leading in the polls, with promises to implement protectionist economic policies and reduce the cost of living for French citizens. Le Maire has criticized the RN’s platform, calling it a collection of lies and urging voters to support President Emmanuel Macron’s centrist party instead.
The looming possibility of a far-right victory in the elections has already had an impact on the French economy. Both French bonds and stocks have experienced a decline, with ratings agency S&P Global expressing concerns over the potential economic implications of the RN’s proposed policies. The risk premium on French government bonds has risen, reaching its highest level since 2017. The spread between French and German borrowing costs is also on the rise, indicating growing unease among investors.
Finance Minister Le Maire has highlighted the risks associated with the current political instability in France. He has raised concerns about the country’s ability to finance its debt in the face of proposed spending increases by the far right. Le Maire emphasized the importance of fiscal responsibility and warned that the RN’s economic policies could lead to a financial crisis. Additionally, he criticized a left-wing alliance’s proposals to lower the retirement age and introduce a new wealth tax, stating that these measures would also be detrimental to the French economy.
Both Marine Le Pen and RN leader Jordan Bardella have accused Le Maire and Macron of lying about the state of France’s economy. They have pledged to provide an accurate assessment of the country’s financial situation, alleging that the government has been misleading the public about the impact of their reforms. Le Pen has criticized the government ministers for concealing the true state of France’s finances and the consequences of their policies over the past seven years.
The upcoming snap elections in France have raised concerns about the potential for a financial crisis if the far right were to emerge victorious. The market has already reacted to the uncertainty, and Finance Minister Le Maire has warned about the economic consequences of the proposed policies by both the far right and the left-wing alliance. The accusations of deception and misinformation further complicate the situation, leaving French voters with a difficult decision to make in the upcoming elections.