French business leaders are expressing concerns about the economic policies proposed by political parties ahead of the snap parliamentary elections. At a recent event organized by MEDEF, France’s leading employers’ federation, politicians from various parties presented their economic programs. Prominent figures like Éric Ciotti of Les républicains and Jordan Bardella of the far-right National Rally (RN) reassured employers about their economic agendas. Bardella emphasized stability and growth, while Ciotti controversially suggested a potential alliance with RN. However, RN’s proposal to reverse pension reform has raised concerns among business leaders, with one company chairman describing their budget plans as “completely unbalanced.”
Representatives from the left-wing coalition, such as Boris Vallaud, called for increased solidarity from employers. Prime Minister Édouard Philippe and Finance Minister Bruno Le Maire, from President Emmanuel Macron’s centrist alliance, stressed a pro-business approach and criticized the economic policies of their opponents. Le Maire particularly denounced RN’s proposals as “crazy” and highlighted the importance of fiscal responsibility. Amid the uncertainty, business leaders like Charles Le Goff have taken a cautious approach, pausing investments and hiring. Employees, like Stéphane Roselli, share these concerns about the future. In the aeronautics industry, one business owner has already secured a loan to prepare for potential challenges, doubting the feasibility of the promises made by RN and the left-wing parties.
The upcoming snap parliamentary elections, scheduled for June 30 and July 7, were called after Macron dissolved the National Assembly following RN’s strong performance in European elections. Polls currently show RN leading with 34%, followed by the left-wing Popular Front at 29%, and Macron’s Together coalition at 22%. Bardella, addressing MEDEF, promised an audit of public finances and a revised budget for 2024, including tax cuts for companies. He also advocated for reduced EU spending and curbing fiscal loopholes. However, Le Maire reiterated the government’s commitment to lowering the budget deficit and maintaining stability. Left-wing representatives like Eric Coquerel argued that increased spending would be balanced by economic growth and higher taxes on the wealthy.
Despite these assurances, many employers are still unconvinced by the proposals put forward by the political parties. Sophie de Menton, head of Mouvement Ethic, expressed skepticism that any of the party’s plans would provide the reassurance needed for businesses. Prime Minister Gabriel Attal pledged to lower power bills, adjust inheritance tax, and link pensions to inflation if the Macron alliance retained power. He also confirmed that there would be no tax hikes under their administration. While markets have shown some stability after recent fluctuations, investors remain cautious about the potential outcomes of the elections. French blue-chip stocks have slightly recovered, but the borrowing cost gap between French and German bonds demonstrates ongoing investor caution regarding a high-spending RN-led government or potential legislative gridlock if no party secures an absolute majority.
