President Macron’s decision to dissolve France’s National Assembly after a defeat in EU parliamentary elections sent shockwaves through the financial market, with stock prices tumbling and interest rates rising. The upcoming legislative elections are causing anxiety among investors, as parties like the far-right National Rally (RN) and the left-wing New Popular Front (NFP) are promising substantial policy changes.
Despite both sides offering spending measures to boost the economy, investors seem to favor the RN’s economic platform over the NFP’s. The RN plans to exit the EU electricity market and reduce France’s contribution to the EU budget, while the NFP aims to lower the retirement age and increase spending. The uncertainty surrounding the election outcome has raised concerns about instability and potential clashes with EU regulations.
With the RN likely to gain a majority in parliament, France could face political and financial turmoil. An RN-led government could lead to deadlock, strained relations with the EU, and civil unrest. The outcome of the elections will have far-reaching implications for France and its position within the European Union.
Is France heading towards a crisis after the election? Watch the video to learn more:
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