French Business Community, Intimidated by "Jungse" Left-Wing Coalition, Turns to 'Far-Right' Le Pen

As France's early general election approaches, the French business community appears to be turning its attention to the far-right party National Rally (RN), led by Marine Le Pen, instead of the left-wing coalition that emerged to block the far-right's rise to power. This shift is based on the judgment that the left-wing coalition, which advocates radical tax hikes, would be more detrimental to corporate management than the far-right party prioritizing anti-immigration policies. Recently, daily protests against far-right rule have been held across France, causing ongoing political turmoil.

Marine Le Pen, a leading far-right politician in France
[Photo by Reuters]

French Business Community Turns Attention to Far-Right Party

Major foreign media reported on the 17th (local time) that as the French early general election campaign intensifies, CEOs frightened by the left-wing coalition New Popular Front (NFP)'s pledges are courting the Le Pen camp to establish contact.

Four senior executives and bankers who requested anonymity identified the NFP as worse for corporate management compared to RN, which are currently competing for first and second place in opinion polls. The NFP is a kind of left-wing coalition formed by four parties?the Unyielding France (LFI), Communist Party (PCF), Socialist Party (PS), and Greens (EELV)?which have allied to block RN's rise to power ahead of the early general election.

A CEO of a French stock-listed company said, "The left-wing coalition does not seem likely to back down from its hardline anti-capitalist pledges," adding, "RN's economic policies are closer to a blank slate." Another business executive said, "If someone had told me two weeks ago that the business community would support RN and consider excluding President Emmanuel Macron, I would not have believed it." Following the ruling party's crushing defeat by the far-right in the European Parliament elections, President Macron immediately dissolved the parliament and unexpectedly announced early general elections for the 30th of this month and the 7th of next month.

The current early election landscape is a contest among three political blocs: RN led by far-right politician Le Pen, the left-wing coalition NFP, and the Renaissance party led by President Macron. Various opinion polls released ahead of the election show RN leading, followed by NFP in second place. The ruling Renaissance party is squeezed between the left and right, falling far behind in third place.

If RN, which caused a stir in the European Parliament elections, secures a majority in the lower house in this general election, Jordan Bardella is expected to become prime minister. Bardella, regarded as the next-generation far-right politician, has been actively engaging with business leaders in various private meetings and participating in events such as the Paris Air Show for several months. Jean-Philippe Tanguy, RN's member of the National Assembly responsible for economic policy, said, "We are receiving calls from lobbyists, investors, and companies seeking to understand RN's plans," adding, "We are responding that we will maintain fiscal discipline and present a credible plan."

Jordane Bardella, leader of the National Rally (RN)
[Photo by Reuters]

"Far-Right or Left-Wing Coalition": Examining Key Economic Pledges

Ahead of the early general election, the left-wing coalition that emerged to block RN is pushing radical tax and spending policies as its main pledges. These include repealing President Macron's pension reforms, expanding welfare, raising the minimum wage, reintroducing the wealth tax, abolishing tax cuts for the wealthy, and increasing income tax rates for high earners. All of these are agendas that the business community inevitably disfavors.

RN also opposes many of President Macron's policies, including repealing pension reforms. However, these are secondary priorities, as the far-right party plans to prioritize anti-immigration policies consistent with its nature, such as strengthening border controls, abolishing jus soli (birthright citizenship), and ending national healthcare support for undocumented immigrants. RN has confirmed that it does not consider taxation policies similar to those of the left-wing coalition. Instead, it plans to replace property tax on real estate with property tax on financial assets.

Major foreign media reported, "Both the far-right and the left-wing coalition want a sharp break from President Macron's business-friendly policies," but the business community views the far-right party's economic policy direction as preferable to that of the left-wing parties. One entrepreneur said, "The left-wing coalition's economic policies are unacceptable," adding, "They could lead France away from a capitalist system." However, he also noted, "The far-right party poses threats not only economically but also to democracy." A business executive lamented the current situation of entrusting France's economic strategy to either the far-right or left-wing parties as "a choice between the plague and cholera."

French President Emmanuel Macron [Photo by Reuters Yonhap News]

Bloomberg reported, "President Macron's Renaissance party is under attack from both left and right and is trailing far behind in third place in opinion polls," adding, "There has been an implicit agreement within France to prevent the far-right party from seizing national power, but this model is breaking down." The Economist analyzed the possibility of far-right or hard-left rule as "signifying extremist politics, economic populism, and financial instability."

Concerns about France's economic policy veering toward the far-right or hard-left have confirmed uncertainty in the markets. Last week, shortly after the European Parliament elections, the CAC40 index of the Paris stock exchange showed a downward trend, and the yield spread between French and German government bonds?a market indicator of French sovereign risk?moved most sharply since the 2011 Eurozone debt crisis.

However, Marine Le Pen, the de facto leader of RN, sought to reassure the market in an interview with Le Figaro published the day before, stating, "The financial markets do not understand RN's project," and "We respect institutions and do not seek institutional chaos." She also emphasized that even if RN wins the general election, it will not demand President Macron's resignation. Following this, the CAC40 index rebounded for the first time in three trading days. The yield spread between French and German government bonds also narrowed for the first time in eight trading days.

This content was produced with the assistance of AI translation services.