politicsClosed Jul 8, 2024
France Suddenly in Gridlock After Surprise Election Result
- The French leftist alliance is the surprise victor, winning the most seats
- President Emmanuel Macron’s group comes second, while Marine Le Pen’s far-right party places third
- Macron may face tricky coalition talks, or opt for now for a technocratic administration
- Overall market reaction so far is fairly muted on the view that political gridlock may at least limit the ability of the left to enact big-spending plans
Here are the Key Takeaways from the second round of France’s legislative election:
- The European Union’s second-biggest economy looks set fora period of gridlockas parties grapple with political fragmentation and attempt to forge an alliance that could underpin the next government.
- Market reaction was relatively muted, with investors taking the view thatthe most extreme spending plansof the left and right aren’t likely to go anywhere given that neither commands a majority in parliament.
- President Emmanuel Macron could try toengineer a coalitionamong willing but not always like-minded parties. Or he could name a technocratic administration.
- Finding a compromise candidate who could lead the next government won’t be easy. Some early contenders include Marine Tondelier of the Green party and Raphael Glucksmann of the center-left Place Publique; current prime minister Gabriel Attal might also end up staying on.
- Themain left-wing coalition won178 seats, according to the Interior Ministry, and said it will propose a prime minister this week.Macron’s centrist alliance came secondwith 156 seats.
- Far-right leader Marine Le Pen’s National Rally and her allies - who dominated the first round a week ago -were relegated to third, with 143, suggesting France’s traditional firewall against the far right is holding for now.
