The Costly Campaign Promises of France’s Far Right and Far Left
As France gears up for snap elections on June 30 and July 7, both the far right and far left are making ambitious, and expensive, campaign promises. From lowering the retirement age to granting tax exemptions, these pledges pose a significant threat to France’s already strained economy.
Experts like Friedrich Heinemann warn that these promises reflect a radicalization of economic policy, with unrealistic programs that don’t align with the country’s economic reality. With France already grappling with high debt levels and trade deficits, the additional burden of these promises could add billions annually to the budget.
The Consequences of Unmet Fiscal Criteria
The strict Maastricht criteria limiting deficit and debt have been eased due to the pandemic, but the looming campaign promises could push France to intentionally breach the new framework. This poses a challenge to the European Union, as debt transgressions by member states have gone largely unchecked.
The Eurozone’s Fragile Future
Financial experts fear that the euro may suffer if populist governments ignore fiscal rules, leading to instability and political gridlock. The absence of a strong response from European institutions could pave the way for debt accumulation and strained relations within the EU.
Ensuring Fiscal Accountability
Calls for stricter oversight from entities like the European Fiscal Board highlight the need for a neutral authority to enforce fiscal discipline. Failure to address rising debt levels and lavish campaign promises could jeopardize the credibility and cohesion of the EU.