HEDJ - French First-Round Elections: Le Pen's Party Scratches At The Majority
2024-07-03 04:15:00 ET
Summary
- Marine Le Pen’s National Rally secured the highest share of votes in the first round of the French parliamentary elections, suggesting potential gridlock in parliament or a need for Macron to share governing responsibilities with RN.
- France’s significant fiscal challenges, including a budget deficit of -5.5% of GDP in 2023, are exacerbated by the expansionary fiscal policies proposed by both far-right and left coalitions, straining its relationship with the European Union.
- The snap elections have led to market dislocations, and investors are advised to focus on global businesses with significant revenue from outside Europe to mitigate the impact of local political shocks.
By Christopher Gannatti, CFA & Aneeka Gupta
Marine Le Pen's National Rally (RN) and its allies dominated the first round of voting Sunday, locking up 33.2% of the vote. The New Popular Front, formed by left-wing parties, got 28%, while the parties supporting President Macron got 20.8%. Overall participation was strong at 67%. 1 Even though Macron's presidency isn't formally at stake - and he's said he has no plans to resign - Sunday's result indicates it's likely he will either have to share governing responsibilities with Le Pen's group or manage a parliament that is basically gridlocked....
French First-Round Elections: Le Pen's Party Scratches At The Majority