Concerns grow over economic proposals ahead of French elections

Advertisement

French business leaders are expressing concerns about the economic policies of political parties ahead of snap parliamentary elections.

This sentiment was highlighted during a high-profile event organized by MEDEF, France’s main employers’ federation, where prominent politicians presented their economic programmes.

For the first time, Éric Ciotti and Jordan Bardella appeared together at this event, with the aim of assuring employers of their economic agendas.

Bardella, who represents the far-right National Rally (RN), stressed stability and growth, while Ciotti – the leader of the centre-right conservatives Les républicains (LR), who controversially suggested his party allies with the RN – promised support to the business community.

RN’s proposal to change the pension reform has particularly worried many business leaders.

The company’s chairman described RN’s budget plans as «completely unbalanced». Meanwhile, the left-wing coalition, represented by Boris Vallaud, called for increased solidarity from employers.

Édouard Philippe and Bruno Le Maire, from President Emmanuel Macron’s centrist alliance, emphasized a pro-business approach and warned against the economic policies of their opponents. Le Maire criticized the RN proposals, calling them «crazy» and stressing the need for fiscal responsibility.

Amid political uncertainty, business leaders such as Charles Le Goff have adopted a cautious approach, freezing investment and halting hiring. Employees share this concern, with long-time staff member Stéphane Roselli expressing concerns about the future.

Another business owner, involved in the aeronautics industry, has taken a loan to prepare for possible challenges, doubting the feasibility of the RN and the promises of the left wing.

The elections, set for June 30 and July 7, follow Macron’s decision to dissolve the National Assembly after the RN’s strong performance in European elections.

The latest polls show the RNs leading with 34%, followed by the left-wing Popular Front with 29%, and Macron’s Together coalition with 22%.

Bardella, addressing MEDEF, promised an audit of public finances and a revised budget for 2024, including tax cuts for companies.

He also called for reducing EU spending and curbing fiscal loopholes. However, Le Maire reiterated the government’s commitment to reducing the budget deficit and maintaining stability.

Left-wing figures such as Eric Coquerel of France Unbowed argued that increased spending would be balanced by economic growth and higher taxes on the wealthy.

Despite these assurances, many employers remain unconvinced. Sophie de Menton, head of Mouvement Ethic, stated that none of the party’s proposals provided certainty.

Prime Minister Gabriel Attal has vowed to cut energy bills, fix inheritance tax and link pensions to inflation if the Macron alliance retains power. He confirmed that there will be no tax increase under their administration.

Markets have shown some stability after recent swings, but investors remain wary of a high-spending RN-led government or possible legislative gridlock if no party secures an absolute majority.

French blue-chip stocks have recovered slightly, but the borrowing cost gap between French and German bonds points to continued caution among investors.