France FM warns of financial crisis if far right wins election
Published: 06:06 PM,Jun 14,2024 | EDITED : 10:06 PM,Jun 14,2024
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PARIS/HENIN-BEAUMONT: French Finance Minister Bruno Le Maire (pictured) warned on Friday that the euro zone's second-biggest economy faced the risk of a financial crisis if either the far right or left won the coming parliamentary election because of their heavy spending plans.
He urged voters to back President Emmanuel Macron's centrist candidates in the June 30 and July 7 ballot.
Political uncertainty has already triggered a brutal sell-off of French bonds and stocks after Macron called the snap election, following a trouncing of his ruling party by Marine Le Pen's eurosceptic National Rally (RN) in European Parliament elections last weekend.
Opinion polls project that the RN, which has promised to cut electricity prices and VAT on gas, and increase public spending, is on track to garner the most votes and be in a position to run the government.
The RN calls for protectionist 'France first' economic policies. 'When I look at the far right, I see a program that is made of lies,' Le Maire, who has been finance minister for seven years, told franceinfo radio.
Worries over stability have triggered the biggest weekly jump since 2011 in the premium investors demand to hold French government debt, and bank stocks tumbled this week.
The possibility of an RN victory has compounded investor concerns around the country's fiscal discipline, analysts said.
Asked whether the current political instability could lead to a financial crisis, Le Maire said 'yes'. 'This is because of the political programmes that are on the table with regard to the question if we will be able, yes or no, to keep financing this debt,' he said.
'I'm sorry, they (the far right) do not have the means to afford these expenses,' said Le Maire, who had been planning multi-billion savings to put the country's finances back on track.
He urged voters to back President Emmanuel Macron's centrist candidates in the June 30 and July 7 ballot.
Political uncertainty has already triggered a brutal sell-off of French bonds and stocks after Macron called the snap election, following a trouncing of his ruling party by Marine Le Pen's eurosceptic National Rally (RN) in European Parliament elections last weekend.
Opinion polls project that the RN, which has promised to cut electricity prices and VAT on gas, and increase public spending, is on track to garner the most votes and be in a position to run the government.
The RN calls for protectionist 'France first' economic policies. 'When I look at the far right, I see a program that is made of lies,' Le Maire, who has been finance minister for seven years, told franceinfo radio.
Worries over stability have triggered the biggest weekly jump since 2011 in the premium investors demand to hold French government debt, and bank stocks tumbled this week.
The possibility of an RN victory has compounded investor concerns around the country's fiscal discipline, analysts said.
Asked whether the current political instability could lead to a financial crisis, Le Maire said 'yes'. 'This is because of the political programmes that are on the table with regard to the question if we will be able, yes or no, to keep financing this debt,' he said.
'I'm sorry, they (the far right) do not have the means to afford these expenses,' said Le Maire, who had been planning multi-billion savings to put the country's finances back on track.