French executives concerned ahead of crucial vote

As France heads into a pivotal parliamentary election on Sunday, business leaders gathering in Aix-en-Provence have expressed significant concern over the nation’s volatile political landscape and its potential impact on the economy.

Executives from major firms, who have benefited from President Emmanuel Macron’s pro-business reforms since his 2017 election, are anxious about the rise of far-right and far-left parties and their promises to reverse key reforms like raising the retirement age and scrapping a wealth tax.

Ross McInnes, chairman of aerospace giant Safran, voiced worries about the end of a decade-long reform cycle, citing potential instability from any coalition formed to govern.

Polls predict a decisive defeat for Macron’s party, with the far-right National Rally (RN) expected to win the most seats, though not an outright majority.

This political shift could lead to increased street protests and a potential wave of bankruptcies, highlighting concerns about future social unrest in France.

Business leaders avoided discussing the election publicly but acknowledged their anxiety privately, emphasising the historical tendency for social unrest in the country.

The current political uncertainty raises questions about the stability and direction of France’s economic policies moving forward.

Attribution: Reuters.