French President Emmanuel Macron speaks during a meeting with members of the AI sector at the Elysee Presidential Palace in Paris, France, May 21, 2024.
Yoan Valat | Afp | Getty Images
French President Emmanuel Macron said on Sunday he would dissolve the country’s parliament and call for a new nationwide vote on legislation after suffering a heavy defeat in EU elections.
The shocking announcement came after election polls released by public broadcaster France TV suggested Marine Le Pen’s far-right Rassemblement National (RN) will win about 31.5% of the vote, compared to 15.2% for Macron’s Renaissance Party.
“I will not be able to pretend at the end of this day that nothing happened,” Macron said in a televised address, according to a translation by CNBC.
The first round of parliamentary elections will take place on June 30, the second round on July 7, Macron said.
After calling on Macron to call new elections, Le Pen welcomed the news, saying on X: “We are ready for it.”
Calling a general election is a risky move by Macron, who could lose control of France’s domestic affairs if Le Pen’s RN wins a parliamentary majority. Macron’s presidency does not end until 2027 and he cannot run for a third term.
“By unexpectedly taking things to the extreme in a new parliamentary election, Macron can hope to revive the fortunes of his party,” Holger Schmieding, chief economist at Berenberg Bank, said in a statement on Sunday evening. “However, unless there is a major change in sentiment, his party is likely to lose significantly in the parliamentary elections.”
He added that new elections for a “financially difficult France” would create uncertainty that could give markets cause for concern.
Bardella in the spotlight
RN is led in Europe by Jordan Bardella, 28, who is on a mission to make the far right acceptable to the youth of France and beyond. In an Ipsos poll released in May, 32% of respondents said they would be happy if Bardella became president in 2027 (ahead of Le Pen, who came in second with 31%).
The nationalist and populist party’s campaign promises included “restoring order” in France, closing “radical” mosques and stopping what it calls a “migrant flood.” She also promised to cut VAT on energy bills, invest in nuclear energy and lower the retirement age to 60 “for those who start working early.”
Jordan Bardella, President of Rassemblement National (RN), a French nationalist and right-wing populist party, arrives for his final rally before the upcoming European Parliament elections.
Photo only | Photo only | Getty Images
Historic commitments to leave the EU and abandon the EU Euro were dropped by Le Pen some time ago as she sought to appeal to a broader range of voters.
“However, whether today’s French result and the likely gains in the early parliamentary elections could put Le Pen on the path to ultimately becoming president is a completely different question,” Berenberg’s Schmieding said.
“It is easy for them to rail against a president who has lost popularity in his second term. But that is not the same as winning against a new candidate in a presidential election (coming up in 2027). “A lot will depend on whether France is centrist.” Parties can field an attractive candidate against them.”
Polls closed on Sunday after the final and biggest day of voting in the European Parliament elections, with populist, far-right parties receiving record support, according to early data.
The center-right European People’s Party (EPP) is again expected to win the most seats in parliament, although with slightly more seats than before. The right-wing extremist group “Identity and Democracy”, of which RN is a member, recorded large increases.
—CNBC’s Charlotte Reed contributed to this report.
Source link
2024-06-09 21:16:32
www.cnbc.com
