Marine Le Pen's far-right party performed strongly in the latest European Parliament elections. Photo: RODRIGO JIMENEZ/EPA-EFE/Shutterstock
France will face a “Lise Truss-style scenario” if Marine Le Pen's far-right National Rally (RN) wins a snap election, Finance Minister Emmanuel Macron has warned.
Bruno Le Maire cited the 2022 crisis in British debt markets to warn voters against backing Ms Le Pen's party, which performed strongly in last week's European Parliament elections.
“Debt debt possible in France crisis,” Le Maire told local party officials on Tuesday, as first reported by the Financial Times. “A Liz Truss-style scenario is possible.”
Ms Truss's mini-budget, which relied on heavy borrowing to pay for sweeping tax cuts, was followed by a crisis in the bond markets.
< p>The Bank of England was eventually forced to intervene to stabilize the situation, leading to her resignation Ms Truss is just 44 days into her prime ministership.
Since Monday's snap election was called, Mr Macron has tried to sway voters by arguing that National Rally's plans would increase public spending by €100bn (£84bn), threatening to raise borrowing costs for ordinary people.
In a speech on Wednesday, Mr Marcon said the reversal of his pension reform, which raised the retirement age from 62 to 64, would “bring the pension system into bankruptcy.”
Le Pen's party, with almost a third votes in the European elections, gained popularity by promising to reverse the move. This has fueled rumors of a costly policy change if she comes to power.
Mr Macron called on voters to oppose parties of both the far left and the far right in a bid to “build a joint project” for the country.
The French President said: “Today it’s simple: we have unnatural alliances on both extremes that agree on nothing but jobs that need to be divided and which cannot implement any program.”
“Look what has happened since Monday – interest rates have risen, markets are panicking, European and international partners are worried.”
The French expressed “anger”, he said, but knew that the RN policy and those who followed far left were completely unrealistic.
Credit ratings agency Fitch indicated there were serious economic risks if RN won.
The agency said: “RN has not provided a detailed budget program, but is in favor of tax cuts and a more progressive tax system. He also called for protectionist measures to shield French firms from global competition.
“Political problems could also hamper structural reforms that would support consolidation by stimulating economic growth, or even increase the risks of a policy reversal.
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“The impact of some reforms is already being felt, such as ongoing measures to increase labor market participation, which are stimulating employment growth.”
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