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Financial crisis hits France after Macron’s disastrous election

France's outgoing finance minister has declared the nation is facing the prospect of an 'immediate financial crisis' after the government was left in deadlock following tumultuous parliamentary elections on Sunday.

Bruno Le Maire celebrated the loss of the hard-right National Rally (RN) party, which Emmanuel Macron’s centrists had feared could storm to a majority, but warned warring parties must come to an agreement and form a coalition in short order.

He also lambasted the tax-and-spend economic policies set forth by the left-wing New Popular Front (NFP) alliance, which took a surprise election victory but fell well short of a majority, plunging the French government into chaos less than three weeks before the Olympic Games in Paris.

These include huge increases in minimum wage and public sector pay, a reduction of the pension age from 64 to 60 and a freeze on the prices of essential goods.

The NFP say their policies will cost some €150 billion over three years and have proposed a 90% tax on all incomes over €400,000 as just one way of balancing the books.

But Macron’s camp warned it could cost as much as €300 billion – and France is already grappling with a budget deficit of 5.5% of GDP.

‘The most immediate risk is a financial crisis and France’s economic decline,’ Le Maire said.

‘The application of the New Popular Front’s disruptive programme would destroy the results of the policies that we have pursued for seven years…

‘This project is exorbitant, ineffective and dated. Its legitimacy is weak and circumstantial. It must not be applied,’ he concluded.

Defying the predictions of political experts, French polls and the world’s media, the New Popular Front alliance (NFP) – led by Jean-Luc Melenchon and his France Unbowed party (LFI) – came from behind on Sunday to eke out a victory with 182 seats in France’s National Assembly.

Pascal Madu

Paschal Madu is the News Correspondent of Spark News Daily - Nigeria's most sought-after online news platform in Politics, Sport, Entertainment and Religion. Paschal Madu is a versatile journalist, writer and researcher. He was formerly the Editor of Mandate Newspaper and Senior Business Correspondent of the defunct The Union Newspaper. Pascal Madu has written several articles, many of which were published in national dailies. The Author studied Mass Communication (Print Option). 07036941267

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