Results published by the French Electoral Commission

France Prepares for High-Stakes Snap Election as Far-Right Leads with 37%

Jun 28, 2024, 01:13 PM

France is set to hold a snap parliamentary election, called by President Emmanuel Macron, which has significant implications for the country's political landscape and financial markets. Polls indicate that Marine Le Pen's far-right National Rally is leading with 37% of the vote, followed by the left-wing New Popular Front coalition at 28%, and Macron's centrist bloc at 21%. The election has heightened market volatility, with the risk premium on French debt reaching its highest level since the 2012 eurozone crisis. The yield premium over German bonds has hit a two-week high, widening to 83.8 basis points. Investors are concerned about the potential fiscal and political instability that could arise from a far-right victory, which could increase France's debt levels and impact its foreign policy. The first round of voting is scheduled for Sunday, with the second round concluding on July 7.