France risks gridlock after Macron handed hung parliament -Breaking
PHOTO : French President Emmanuel Macron gives a speech as he visited NATO forces at Mihail Kogalniceanu Air Base in Romania near Constanta on June 15, 2022. Yoan Valat/Pool via REUTERS/File Photograph
Elizabeth Pineau, Tassilo Hmel
PARIS (Reuters), -Following the defeat of its parliamentary majority, President Emmanuel Macron received calls from his Prime Minister to resign.
Macron’s centrist coalition is under intense pressure from his rivals to get support to save Macron’s reform agenda. This comes after the weekend election resulted in a hung Parliament. France faces a prolonged period of political paralysis, if the attempt fails.
According to a source, Macron invited all parties that are able form a group to the talks in his new parliament on Tuesday and Wednesday.
Macron’s loss of the absolute majority in his Ensemble alliance is a devastating setback. Macron won a second term only two months ago. French governments have relied for decades on the lower house of Parliament to support their political views and generally rubber stamps any proposed changes.
Clement Beaune (European Affairs minister), a friend and ally to the French President said that “we must consider a new way in which we function on an institution level.”
Ensemble emerged as the largest party in Sunday’s second round vote, followed by a fledgling alliance of leftwing parties second, and the far-right more powerful than ever. Conservatives were also considered potential king-makers.
France Inter radio spokeswoman Olivia Gregoire said that “it’s going be complicated.” We’ll have to think creatively.”
Macron will need to either form a bigger coalition, or accept the leadership of a minority government that deals with opposition on a bill by bill basis. The only thing that has saved him is the fact that his opposition parties are bitter rivals, and sometimes riven internally.
Philippe Gudin stated that “such a fragmented parliament would likely result in political deathlock with a slower reform agenda.” Barclays (LON:).
This will probably weaken France’s European position and threaten the country’s already fragile fiscal position.
Elisabeth Borne, Prime Minister of the Far Right and Senior Hard Left figures was forced to resign within a little over a month.
Gregoire stated that Macron will soon restructure his government.
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Macron’s administration and the broad Leftwing Nupes alliance composed of Jean-Luc Melenchon, Marine Le Pen and Marine Le Pen promised that they would be relentlessly pursued in parliament by their far-right allies.
Macron is likely to try and strike a deal or follow the path of the minority government.
Christian Jacob, chief of Les Republicains, said that the party will remain in opposition. He described his stance as “nearly unanimous”, but some members of the party have suggested that the party cooperate with government officials and be a kingmaker.
Both Ensemble and conservatives share compatible economic platforms. This includes support for higher retirement age, nuclear energy and other policies. They would be an absolute majority when they are combined.
There were some cracks on the left.
Melenchon stated Borne should be subject to a confidence voting, but Olivier Faure the socialist leader, another prominent figure in the leftwing alliance said that the bloc was not unified by calling for Borne’s resignation.
Macron’s failure to reach an agreement with opposition will lead to political impasse and possibly snap elections.
Gregoire explained that the government will present a cost of living bill as a first test in the new parliament’s first sitting.
Later in the summer, the left will face proposals for renewable energy. This is a test of its division over nuclear power.
Final results showed Macron’s centrist group won 245 of the 489 seats needed to win an absolute majority. This is well below Nupes 133, the far-right 89, and Les Republicains 61.
Macron did not comment directly on the outcome of the election, although the opposition asked him to.
The weekend result was not a good outcome for French President, aged 44. His victory in April in France made him the first French president to win a second term in over two decades. However, markets took it all in stride. Stocks and the euro did not have an impact while French bonds experienced some pressure Monday.
Ulrich Leuchtmann from Commerzbank stated that the hope of foreign traders in Macron’s 2017 election victory has since vanished. “Euro exchange rates are not affected by elections wins or losses any more,” Ulrich Leuchtmann wrote in a note.