Pan Senhonggan: France is facing a political deadlock, but not a crisis

On June 27, Jin10 News reported that Claus Vistesen and Melanie Debono, economists at Pantheon Macroeconomics, said that France is more likely to fall into a political deadlock rather than a crisis. France will hold the first round of voting for the temporary lower house elections on Sunday. Earlier this month, French President Emmanuel Macron’s centrist party suffered a devastating defeat in the European Parliament elections, prompting Macron to call for early elections. This election seems to further undermine Macron, as polls show that his party will lose to the far-right National Rally and the far-left party France Insoumise. However, neither of these parties is likely to implement their legislative plans, and both plans could disrupt the market. Therefore, the parliamentary elections will lead to a political deadlock rather than a crisis, mainly because the new government will find it difficult to implement the most controversial economic policies.