Le Pen is mightier than the sword, but not Emmanuel Macron
In a largely anticipated result, Emmanuel Macron has won the French presidential election.
The last 12 months has clearly demonstrated that politics matters for financial markets. However, the clearer lesson from the last 12 years is that you ignore central banks at your peril.
However, there is more French politics to come. Macron will formally become the French president on 14 May. The focus will then swiftly move on to the legislative elections on 11 and 18 June. As the head of the relatively new En Marche movement, Macron still faces a challenge from the established parties in terms of getting a majority.
In turn, this will impact his ability to pass legislation and make the reforms he promises. Without a working majority in parliament, Macron will be forced to work alongside a Prime Minister from a different political party and compromise with his/her domestic policy agenda.
Macron's key policies
Amongst the key measures Macron has campaigned on are:
- Reduce the deficit by €60bn
- Cut 120,000 public sector jobs
- Boost competitiveness through a €50bn investment plan
- Lower household and corporation taxes
- Promoting a common euro area budget and finance minister
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