Fair|It is feared that the possible election victory of the far-right National Coalition will scrap the economic reforms of the Macron administration.
of Paris the stock market has had a hard time since last weekend’s European Parliament elections. President Emmanuel Macron ordered early parliamentary elections, when the far-right National Alliance won the European elections with an overwhelming 32 percent support.
The president’s own Renaissance party only received about 15 percent support. The anticipation of the surprise election has created uncertainty in the market. The CAC 40 index of the Paris stock exchange has fallen by about six percent since Monday.
Bank shares have fallen particularly much. Crédit Agricole and BNP Paribas have fallen by around nine percent since Monday morning.
Investors frightens the economic magazine of the Financial Times According to (FT), the power of the left-wing parties and the far-right in the parliament is growing as much.
Representing the national coalition Marine Le Pen has promised to increase public spending. On Thursday, four left-wing parties said on the other hand that they had agreed on an electoral alliance. This is also believed to weaken the chances of success of Macron, who pushed economic reforms, in the two-phase election. The elections will be held on June 30 and July 7.
According to the economists interviewed by FT, the markets are afraid of the end of economic reforms, the lowering of the French government’s credit rating and even talk of leaving the eurozone.
French the market uncertainty caused by the political crisis has spread to other parts of the euro area as well. German, Italian and Spanish stock markets have also fallen.
The euro has weakened against the US dollar. Risk premiums for French government bonds have also risen.
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