Euro steady after Macron wins French presidency

Emmanuel Macron

The euro jumped to $1.1024 at one point before slipping back to $1.098, the BBC reports.

Investors had widely expected pro-EU centrist Mr Macron to beat far right nationalist Marine Le Pen.

He has proposed cutting corporation tax and changing the labour market, but there are concerns about his ability to get his plans implemented.

As an independent, Mr Macron does not have representatives in parliament.

Peter Hensman, global strategist at Newton Investment Management, said: “The challenge going forward is Macron’s lack of significant support in parliament.

“He founded his own party, En Marche!, and hence currently has no elected representatives to push through his plans. This means the parliamentary elections scheduled for 11 and 18 June will have significant implications for his future prospects.”

Mr Macron is a former investment banker and an economic liberal. He was economy minister under Socialist President Francois Hollande, but has tried to define himself as neither left nor right politically.

He has proposed a range of policies combining budget cuts and more labour market flexibility, with public investment and an extension of the welfare state.

“Voters elected for Emmanuel Macron’s pro-business policy proposals, which have the potential to unlock long-held-back investment and stimulate French markets,” said Stephen Mitchell at London-based fund manager, Jupiter Asset Management.

His opponent in the race for the presidency, Marine Le Pen, is a critic of globalisation and had proposed withdrawing France from the single currency.

Michael Hewson, chief market analyst at CMC Markets UK, said: “While politicians in Europe let out a collective sigh of relief what the result can’t disguise is the level of voter dissatisfaction in France as a whole, given that nearly half the French electorate still voted for parties who ran on an anti-globalisation ticket.

“Knowing all of this the new French President may well find that winning was the easy bit. It’s all well and good running on a ticket of cutting 120,000 public sector jobs, a 60bn euros cut in public spending and a lowering of the unemployment rate to 7%, it will be another getting it through the French parliament.”

  Share:

Leave a Reply

*