Tuesday, September 17, 2024

Le Pen victory threatens ‘Liz Truss-style’ debt crisis in France

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The French president said: “Things are simple today: we have unnatural alliances at both extremes, who quite agree on nothing except the jobs to be shared, and who will not be able to implement any programme.

“Look what’s happened since Monday – interest rates have gone up, the markets are panicking, European and international partners are worried.”

The French had expressed “anger”, he said, but were aware that RN’s policies and those of the hard-Left were totally unrealistic.

Credit ratings agency Fitch indicated there are serious economic risks from an RN victory.

The agency said: “RN has not presented a detailed fiscal programme, but has advocated tax cuts and a more progressive tax system. It has also called for protectionist measures to shield French firms from global competition.

“Political challenges may also hinder structural reforms that would support consolidation by boosting economic growth or even increase risks of policy reversals.

“The impact of some reforms is already being felt, such as ongoing measures to improve labour market participation rates, which have boosted employment growth.”

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