French Political Turmoil Sparks Economic Concerns

France's Medef business lobby warned that the left-wing New Popular Front's economic program, victorious in recent parliamentary elections, poses a threat to the economy, causing uncertainty in investments and hiring decisions. Moody's Investors Service cautioned that France's sovereign rating is at risk if fiscal and debt metrics deteriorate due to political turmoil after no party secured a majority in the National Assembly. Outgoing finance minister Bruno Le Maire highlighted the risk of an immediate financial crisis if the New Popular Front's costly economic policies are implemented, emphasizing the need for a coalition and fiscal discipline. Additionally, far-right and far-left alliances reshaping European politics, like Marine Le Pen and Matteo Salvini joining Viktor Orban's Eurosceptic bloc, signal a shift in the European Parliament's political landscape.