French minister warns of financial crisis if Le Pen’s far-right National Rally wins election

‘When I look at the far right, I see a programme that is made of lies,’ Bruno Le Maire says

Marine Le Pen on the campaign trail (Reuters)

France's finance minister has warned that the country faces the risk of a financial crisis if either the far right or left win the snap election called by President Emmanuel Macron.

Bruno Le Maire decried the heavy spending plans of both sides and urged voters to back Mr Macron's centrist candidates in the June 30 and July 7 ballot.

Political uncertainty has already triggered a brutal sell-off of French bonds and stocks after Macron called the snap election, following a trouncing of his ruling party by Marine Le Pen's far-right National Rally (RN) in European Parliament elections last weekend.

Opinion polls project that the RN, which has promised to cut electricity prices and VAT on gas, and increase public spending, is on track to garner the most votes and be in a position to run the government.

The RN calls for protectionist "France first" economic policies.

"When I look at the far right, I see a programme that is made of lies," Mr Le Maire, who has been finance minister for seven years, told franceinfo radio.

Asked whether the current political instability could lead to a financial crisis, Mr Le Maire said "yes".

"This is because of the political programmes that are on the table with regard to the question if we will be able, yes or no, to keep financing this debt," he said.

"I'm sorry, they [the far right] do not have the means to afford these expenses," said Mr Le Maire, who had been planning multi-billion savings to put the country's finances back on track.

The RN, which is expected to announce details of its economic programme in the coming days, has so far given only broad brush comments on increasing household purchasing power and cutting energy prices.

But judging by proposals from the last parliamentary election in 2022, which it has said it would largely stick to, it would cut VAT on energy to 5.5 per cent from 20 per cent and increase public spending, despite already significant levels of public debt.

Marine Tondelier of the Greens, left, and other members of the left-wing coalition (REUTERS)

France's left-wing parties want to lower the retirement age, link salaries to inflation and introduce a wealth tax for the rich, leaders of the newly-agreed alliance that spans from the hard left to the Socialists and Greens

"Emmanuel Macron won't have a majority," Greens leader Marine Tondelier told a new conference.

"It's either the far right or us," she said, urging leftwing voters to back the new alliance, which gathers the Socialists, Greens, Communists, and hard-left Unbowed France (LFI) in an alliance dubbed the "Popular Front."

Ms Tondelier said a top priority for the group would be to scrap Macron's very unpopular pension reform. Other measures would include increasing the minimum wage, introducing a wealth tax, boosting measures to fight climate change, and reforming the European Union's agriculture policy.

While opinion polls show little chance of the left winning the election, Mr Le Maire said the alliance would be just as bad as RN for the economy.

Meanwhile, Ms Le Pen and RN leader Jordan Bardella both accused Mr Le Maire and Macron of lying over the state of the economy.

"Mr Macron's government has lied," Ms Le Pen claimed as she campaigned in northern France, accusing government ministers of hiding the real state of finances and the impact of the reforms they have carried out.

"If I am prime minister, I will pass in the first weeks an immigration law that will facilitate the expulsions of delinquents and Islamists," Mr Bardella told BFM TV.

"On economic issues, I have one priority, it is purchasing power. I would push through a vote for the reduction of VAT on energy... and negotiate an exemption from the European electricity market," he said. A pension reform would come later, he added.

Reuters