French bosses fear far right's vague economic plans

PARIS

French business leaders have been pitched into fresh uncertainty by snap parliamentary elections called by President Emmanuel Macron that risk strengthening the far right.

Federations are treading lightly with their public comments, aware that they could be sitting across the table from National Rally (RN) ministers if the party scores a major breakthrough in the June 30 and July 7 ballots.

Local business group U2P would "respect the people's choice, but the RN has to say more precisely what it proposes on questions with a tax, social and economic effect on small firms," its chief Michel Picon told AFP.

At the last presidential election in 2022, the group had warned that RN chief Marine Le Pen's campaign promises "would have bad consequences for business," he recalled.

At stake are issues such as returning to an official retirement age of 60 - raised to 64 in a wildly unpopular Macron reform last year- and a still harsher crackdown on immigration.

"What does this mean for people working for us today?" Picon asked.

"We're business players who don't get involved in politics," said Thierry Cotillard, head of the Mousquetaires/Intermarche supermarket chain.

But "whoever the politicians are, we will fiercely defend our positions," he warned.

Investors have clearly signalled their alarm with heavy selling of French stocks.

Yields on French government bonds have also spiked, suggesting growing doubts about France's capacity to finance its spending if the RN puts its promises into practice.

Macron's Finance Minister Bruno Le Maire warned that "if the RN carries out its program, a debt crisis in France is possible."

On June 11, he exhorted business leaders to "stick their neck out" against the far right.

Centrist Macron's time in office has been marked by reforms aimed at making life easier for businesses and high-profile courting of foreign investment.

By contrast, "we know nothing" about the RN's plans, said the head of one major European industrial firm's French subsidiary, on condition of anonymity.

Without naming any party, the main employer's federation MEDEF told AFP that "a new campaign is starting in which we do not share certain political visions, which are incompatible with business competitiveness and prosperity for our country and fellow citizens."

Such proposals "would inevitably lead to further deterioration of our public finances, and to tax cuts for households and companies", it added.

The CPME small-business group for its part called for supply-side policies, greenhouse emissions cuts and welfare state reforms to continue.

It also warned of France's staggering three-trillion-euro ($3.2 trillion) debt pile, which ratings agency Moody's said on June 10 risked a downgrade due to the "potential political instability" from the upcoming election.