Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

France faces political deadlock after left-wing shock surge

Published 07/08/2024, 03:48 AM
Updated 07/08/2024, 04:00 AM
© Reuters.  France election results spark uncertainty after surprise left-wing surge
EUR/USD
-
(Updated - July 8, 2024 3:56 AM EDT)

France faces a run of complex negotiations to form a government after an unexpected left-wing surge thwarted Marine Le Pen's far-right ambitions.

The New Popular Front (NFP) emerged as the leading force in the National Assembly following Sunday's election. However, no single group has secured a majority, leaving possibilities such as an NFP minority government or a broad, unwieldy coalition on the table.

This outcome deals a significant blow to President Emmanuel Macron, leaving France's position as the euro zone's second-largest economy uncertain and potentially unstable, especially with the Olympic Games approaching. The fragmented parliament will likely weaken France’s influence within the European Union and complicate domestic policymaking.

The election results showed the left-wing coalition securing 182 seats, Macron's centrist alliance with 168, and Le Pen's National Rally and allies with 143, according to the interior ministry data cited by Le Monde.

"According to our institutions' logic, Emmanuel Macron should now invite the New Popular Front to nominate a prime minister," said Green leader Marine Tondelier, a potential candidate for the role.

"Will he or won't he? As this president is always full of surprises, we'll see," she added in an interview on RTL radio.

Prime Minister Gabriel Attal announced his intention to resign, though it remains unclear if President Macron will accept it immediately given the challenges of forming a new government.

"I will of course do my duties as long as it's needed - it cannot be otherwise on the eve of a date (the Olympics) that is so important for our country," Attal said.

Parties within the NFP, including the French Communist Party, hard-left France Unbowed, the Greens, and the Socialist Party, convened overnight to discuss their next steps. France Unbowed's leader, Jean-Luc Mélenchon, argued that the new prime minister should come from the NFP. However, internal divisions make consensus on a premier challenging.

Centrist figures, such as former Prime Minister Edouard Philippe, said they were prepared to work towards a stable government but ruled out cooperation with Mélenchon's France Unbowed, viewed by many centrists as extreme.

The euro declined following the announcement of the vote projections.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.