French Elections: A shock to global markets  

Date:

The French Presidential election is fast approaching on this Sunday, and although various estimates show Macron as the likely winner, investors are still apprehensive.  

French Elections: A shock to global markets  
Image Source – ejpress

Polls show that the result will be closer than the last election and analysts say that in the scenario that Le Pen wins, the impact would be bigger than Brexit and Trump winning the US elections.  

Strategists at Citi put the probability of a Le Pen win at 35%. Still, they encouraged clients to hedge their bets on French government bonds, and cautioned that a Le Pen win would hurt stocks. 

Victory for Le Pen would immediately raise questions about France’s political and economic ties to the European Union, even though she has dropped her pledge to take the country out of the bloc. Her policy goals — like stopping foreign workers from coming to France, which would end freedom of movement in Europe — could still create serious conflict. 

This could spark a “Frexit,” or French exit from the European Union “by accident. If France, under Le Pen, pushed ahead with policies that broke EU law, it is predicted there would be an exodus of capital as investors pull cash from the country, as when the United Kingdom voted for Brexit in 2016. 

Although there have been reports calling a Le Pen victory less radical than it seems, the exact impact of Le Pen victory remains to be seen in the coming days.  


Published By – Chirag Agrawal

Edited By – Shaurya Mahajan  

Shaurya Mahajan
Shaurya Mahajan
Humanities stream, 12 grader from Bhavan Vidyalaya, Panchkula. Well read and always eager to do more!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe

Popular

More like this
Related

Chile gets a new draft constitution  

Members of the constitutional convention met on Saturday in...

Erdogan says Swedish, and Finnish delegations should not bother coming to Turkey 

On Monday, Turkish President Tayyip Erdogan said that Swedish...

Embracing self is a newfound love- Modern Love

Life and Love are integral parts of every person's...

History has been written. BTS wins the Billboard Music Awards

BTS, this k-pop group has not failed to affect...