A Pantheon macroeconomist said in a report that investors will closely follow the French government's financial plan. French President Macron has not yet appointed a new prime minister after nearly two months of elections, and no political party in the French National Assembly has obtained a clear majority. According to the country's constitution, this could result in a freeze on the 2025 budget to comply with the 2024 spending plan. However, if the new government formulates and passes a new budget this month, it may introduce measures that could unsettle the European Union and the market, especially calls to repeal Macron's landmark pension reform and proposals from the left to raise wages and restore energy subsidies.
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Pansun Macro: O próximo orçamento anual da França ainda é um mistério
A Pantheon macroeconomist said in a report that investors will closely follow the French government's financial plan. French President Macron has not yet appointed a new prime minister after nearly two months of elections, and no political party in the French National Assembly has obtained a clear majority. According to the country's constitution, this could result in a freeze on the 2025 budget to comply with the 2024 spending plan. However, if the new government formulates and passes a new budget this month, it may introduce measures that could unsettle the European Union and the market, especially calls to repeal Macron's landmark pension reform and proposals from the left to raise wages and restore energy subsidies.