Le Pen and the left, a danger to the economy, says a French organization.

20 Jun, 2024

Le Pen and the left, a danger to the economy, says a French organization.

The head of France’s Medef business lobby criticized the campaign programs of both the far right and an alliance of leftist parties, stating they are a danger to the economy. Marine Le Pen’s National Rally would cut France off from the European Union, according to Patrick Martin in Le Figaro. He condemned the party’s plans to reverse Macron’s reforms of unemployment insurance and pensions and reduce the value added tax.

The New Popular Front, grouping Socialists, Communists, Greens, and France Unbowed, would increase public spending by €200 billion annually, funded by taxes or the deficit, Martin added. He warned that both programs are hazardous for the French economy, growth, and jobs, criticizing the lack of consideration for the international economic situation.

These comments come as Medef prepares to question the main political groups on their election pledges, with the campaign focus shifting to business and the economy. Following Macron’s unexpected decision to dissolve parliament, a market selloff wiped $258 billion from French companies' market capitalization. Paris also lost its status as Europe’s largest equity market to London.

Martin, expressing astonishment at Macron's decision, fears a debt crisis, noting the strong market reaction and potential for further turmoil if these measures are implemented. Valerie Rabault of the Socialist Party estimated the New Popular Front’s program would result in €106 billion in new spending by 2027.

National Rally head Jordan Bardella promised a responsible approach, proposing an independent audit of public finances to guide economic reforms. However, Martin doubts the National Rally's capability to follow Italy’s Meloni, who has a more liberal and less anti-European stance.

On Thursday, business leaders will hear from Bardella, representatives from the New Popular Front, Horizons, Republicans, and Finance Minister Bruno Le Maire, as each presents their economic proposals. Polls show the National Rally leading the first-round vote, followed by the leftist alliance, with Macron’s party third, making the ultimate outcome uncertain.