France has made little progress towards forming a new government since the second round of the elections last Sunday. But when a new administration is eventually formed, it will struggle to agree a plan to reduce the budget deficit. This in turn could set up a conflict with the European Commission in the Autumn. Meanwhile, we expect the ECB to leave its policy rates unchanged next Thursday.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services