French Parliament Elections: National Rally, Snap Polls and French Economic Uncertainty

In the aftermath of the first round of the election, Marine Le Pen, the presidential candidate of Front National, addressed her followers. The far-right nationalist National Rally (RN) led by Marine Le Pen has seen an increase in support in the final voter surveys before the election. The balance of power in the National Assembly will be determined by this election, which will be conducted in two rounds.

German companies are closely watching these snap parliamentary elections in France. Both French and German companies are concerned about France’s attractiveness in terms of economic policy announcements from the right and the left. Patrick Brandmaier, the managing director of the Franco-German Chamber of Industry and Commerce, mentioned that they are particularly worried about a potential victory for either the RN or the leftist New Popular Front (NFP) alliance.

Financial markets were rattled by President Emmanuel Macron’s decision to call for these elections after his centrist party suffered a defeat to the far-right in European Parliament elections a few weeks ago. There are concerns about France’s fiscal challenges and investors worry that a victory for either party could pose a threat to the French economy, which is second largest in Europe after Germany. The possibility of higher premiums on French government bonds would further strain an already stretched state budget. Analysts have highlighted