What happened
French National Rally leader Marine Le Pen presented her party's financial plan, warning that France is on the brink of an economic abyss. Le Pen and her deputy, Jordan Bardella, outlined a plan to deliver €140 billion in net savings by 2032 and restore the budget to a primary balance within 18 months.
The plan includes reducing the national debt by 10 points over five years and slashing the deficit to the EU limit of 3% by 2030. Le Pen criticized President Emmanuel Macron's economic record, saying his policies have led to a rise in taxes and a decline in purchasing power for French families.
The National Rally's economic agenda includes a 'golden rule' for national budgets, aiming to reduce French debt to 60% of GDP. The party plans to cut spending by €85.5 billion, with a focus on reducing spending on immigration and bureaucracy. Le Pen also proposed cutting taxes to spur economic growth, including slashing the Value Added Tax (VAT) on energy and essential products.
The plan was well-received in the bond markets, with Paris' 10-year bond yield seeing its largest single-day decline since May. National Rally president Jordan Bardella said the plan prioritizes useful spending and restoring purchasing power to the French, rather than increasing levies and debt.
