France: A Unique European Gem Beyond Greece

After Emmanuel Macron’s snap election gamble in July, his arch-nemesis Marine Le Pen is trying her own roll of the dice. The French far-right leader this week spooked markets and put Prime Minister Michel Barnier on the defensive by threatening to bring down his government if her anti-austerity demands on next year’s budget aren’t met.Bluster? Brinkmanship? Bien sur: Le Pen has reason to turn the screw on her opponents ahead of a court ruling that could ruin her presidential aspirations. Still, rather than take the risk of calling her bluff, Barnier’s government has done the eminently sensible thing of dangling concessions by reversing course on electricity tax hikes. A game of chicken with the far right makes little sense, with implied French borrowing costs equal to Greece’s for the first time and the imminent return of Donald Trump, who is no doubt happy to see French woes adding to Germany’s before even the first whiff of trade musket shot.