French Finance Minister Bruno Le Maire has issued a warning that France could be on the brink of a financial crisis if the far-right party wins in the upcoming elections. Opinion polls suggest that Marine Le Pen’s National Rally (RN) is gaining traction, with promises to reduce living costs and increase public spending. Le Maire criticized the far-right’s economic policies as being based on lies and urged voters to support President Macron’s centrist party.
The proposals put forward by the RN, such as protectionist economic policies and increased public spending, have raised concerns among investors and ratings agencies. French bonds and stocks have experienced a downturn, with S&P Global downgrading the country due to the potential impact of the RN’s policies. The risk premium on French government bonds has increased significantly, indicating growing uncertainty among investors.
Le Maire expressed concerns that the current political instability in France could lead to a financial crisis. He highlighted the importance of being able to finance the country’s debt, emphasizing that the far-right’s economic proposals may not be viable. Despite efforts to streamline France’s finances, the rise of populist parties has heightened the risk of a crisis.
Both Le Pen and RN leader Jordan Bardella have accused Le Maire and Macron of deceiving the public about the state of France’s economy. They have pledged to address the country’s financial situation and criticized the government for failing to provide accurate information. The increasing tensions between different political factions have added to the uncertainty surrounding France’s economic future.
As France approaches the upcoming elections, the country faces a crucial juncture in terms of its economic stability. The choice between centrist and far-right economic policies will have significant implications for the country’s financial well-being. It is essential for political leaders to prioritize fiscal responsibility and sustainable economic growth to avert a potential crisis. France’s ability to navigate these challenges will depend on the decisions made in the coming weeks.