(Bloomberg) — Finance Minister Bruno Le Maire warned that the formation of a new left-wing coalition government in France would lead to the country’s withdrawal from the European Union.
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Le Maire said on France Info radio on Friday that the policies of his four-party left-wing Popular Front party were “total madness” and would ensure an economic collapse. If the party took power, it would lead to mass unemployment and France’s exit from the EU.
The Greens, Socialists, Communists and the far-left Indefatigable France party announced late Thursday that they would contest the election as a single group, with opinion polls suggesting it could come in second behind the Rally National.
Conservative Republican lawmakers are also poised to strengthen their alliance with Marine Le Pen’s far-right National Rally party ahead of France’s early parliamentary elections.
The move signals a potential disaster for President Emmanuel Macron’s party: Many of his centrist Renaissance candidates may not make it to the polls in time for the final election, as they would not be able to advance to the second round of voting in France’s two-round voting system.
“We are working towards an agreement, finalising both the proposed platform and the nominations,” National Coalition spokesman Sébastien Cheneu said in an interview on France 2 on Friday about working with Republican lawmakers. “There will be around 80 candidates from the Republican family” surrounding Republican leader Éric Ciotti, he said.
President Macron announced on Sunday that he would dissolve the National Assembly and hold two legislative elections, one on June 30 and one on July 7. The announcement came after his political group suffered a major defeat to the National Rally in the European Parliament elections.
According to projections by pollster Ellerbe, the Rally National is on track to win up to 270 of the 577 seats in the National Assembly, while Macron and his allies are expected to win between 90 and 130 seats.
Adding to the unrest, France’s CGT trade union has called for a nationwide strike on Saturday to warn against France sliding into “fascism”.
The decision to call a snap election has sparked political turmoil and spooked investors, as the vote has raised uncertainty about how the next government will tackle France’s fiscal problems. Le Pen’s party is expected to win the most seats, which would give it the prime ministerial position and greater influence over economic policy, giving it an advantage in forming a new cabinet.
French government bonds have fallen sharply, pushing their yields against safer German government bonds to their highest in seven years. The French stock market has also been hit, with the CAC 40 index down 2% and on track for its worst week in almost a year.
Le Maire said in an interview that the National Coalition’s policies were based on “lies” and that promises to cut value-added taxes on heating fuel, gas, electricity and food would cost the country 24 billion euros ($25.7 billion).
He said the policies of the National Rally and the Popular Front would not be able to cover France’s debts.
Further complicating things, the party is mired in bitter infighting, with most of its leaders trying to oust its leader, Eric Ciotti, after he announced the pact with the National Rally. Ciotti has refused to step down and is appealing the decision in a Paris court.
–With assistance from Samy Adghirni.
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