June 21, 2024

Emmanuel Macron's High-Stakes Gamble

France's snap election could push its deficit to dangerous heights.

France's President Emmanuel Macron has taken a risky path: After the right-wing shift in the European elections, he apparently wants to lead French voters back to the political center with new elections.

"If that was the calculus, the gamble is currently backfiring," fears LBBW chief economist Moritz Kraemer. "In the polls, Macron's camp is languishing in third place."

"Investors are alarmed," he says in view of rising risk premiums for French government bonds. The fatal consequences Kraemer fears - not only for France, but also for the EU - can be read in the current issue of LBBW To the point.