France is at risk of a financial crisis after Emmanuel Macron called a snap election, his finance minister has warned.
Bruno Le Maire raised concerns as the premium France has to pay financial markets for its sovereign debt compared to Germany hit its highest level since 2017.
France currently has to pay more than Portugal to secure its funds, Mr Le Maire warned, while its benchmark Cac 40 stock index dropped by another 2.3pc to fall below its closing price at the end of 2023, wiping out all its gains this year.
Markets have plunged since Mr Macron gambled on calling a snap poll on Sunday in the wake of a humiliating defeat to Marine Le Pen’s far-right National Rally in the European Parliament elections.
France’s leftwing parties will reveal the political manifesto for their renewed alliance today, in a bid to challenge the far-right’s National Rally, leading the polls for upcoming snap parliamentary elections.
Asked on franceinfo radio whether the current political situation in the country could lead to a financial crisis, Mr Le Maire said: “Yes.”
Meanwhile, inflation in France rose by more than expected in May as food and energy prices ticked higher.
The consumer prices index rose by 2.3pc in May, up from 2.2pc in April, according to the national Insee statistics office.
Economists had expected inflation to remain unchanged.
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2024-06-14 08:08:00Z
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