The euro plummeted following the news that the New Popular Front (NFP) “hard left” won the most seats in the French National Assembly.
Tactical steps by President Emmanuel Macron and the Left Alliance, which saw more than 200 candidates step down to prevent a right-wing victory, resulted in Marine Le Pen’s National Rally (RN) coming third in the second round of elections after winning the first round.
In Paris and other cities, some supporters of the left-wing alliance celebrated, while others chose to ransack the city regardless.
The alliance, which commentators note is far from united, includes Greens, socialists, and far leftists. Jean-Luc Mélenchon, the leader of the united left, the so-called New Popular Front, known for his radical slogans, was quick to comment on the result, saying he wanted to govern.
“The will of the people must be respected unconditionally… the president must ask the New Popular Front to govern,” said Mélenchon, known for his spontaneous speeches praising Hugo Chavez and Fidel Castro.
This was greeted with concern by the markets. The euro fell four-tenths of a percentage point against the dollar.
Economists say the NFP program could cost the French treasury an additional €100-€200 billion. Bloomberg analysts also raised the question of whether foreign investors will start to shun France.
While Macron’s party managed to climb to second place, news of the left-wing victory sent the French stock market index plummeting, also affecting the London and Frankfurt indices. According to Bloomberg, if the left is to lead the government in Paris, Macron’s pro-business reforms (which have sparked much discontent) will be reversed.
