This month, France faced a downgrade on its creditworthiness from the Standard & Poor’s rating agency, citing political fragmentation as a concern. While still not at the same risk level as Italy, French debt is now seen as being of similar risk to Portugal’s by bond buyers.
President Macron used the market alarm as a call to action against the National Rally in a press conference. He emphasized that instability in the debt market can have serious repercussions on the real economy, as governments with high borrowing costs and debt struggle to allocate resources to essential sectors like healthcare, education, and transportation.
Macron highlighted that access to credit will become more expensive for French citizens if the economy is not managed effectively. He expressed confidence in his government’s ability to handle economic challenges with seriousness and consistency.
Despite calling the election to unite against the far right, Macron is facing the risk of a political impasse and chaos in the economy if the National Rally gains significant power. The National Rally’s economic goals, such as reducing the pension age and undoing Macron’s reforms, have raised concerns among French officials.
Finance Minister Bruno Le Maire criticized the National Rally’s economic program, referring to it as Marxist and questioning who would bear the costs of implementing it. The possibility of the National Rally coming to power has led to heightened apprehension about the economic future of France.
