President Macron’s decision to dissolve France’s National Assembly created financial turmoil after his party’s defeat in the European parliamentary elections. The announcement resulted in a drop in the stock market index CAC 40 and a rise in interest rates for French public debt. The upcoming snap legislative elections have left investors uneasy with the RN and NFP leading the polls.
Despite both parties promising measures to increase purchasing power, concerns about France’s public debt and budget deficit remain. The market seems to prefer the RN’s economic platform over the NFP’s due to their views on the EU and international trade agreements. The potential outcome of the elections has created uncertainty with fears of a spending spree under an RN-led government.
The financial world is apprehensive about the impact of the elections on France’s economy as well as its relationship with the EU. With various scenarios playing out, political and financial instability looms over the country.