Far-right leader Marine Le Pen sought to woo France's business leaders on Thursday, pledging during a first presidential debate with key rivals to put public finances back on track if she wins power next year.
The debate, organised by France's main business lobby MEDEF, started with Le Pen, hard-left candidate Jean-Luc Melenchon and other candidates smiling and shaking hands but it soon grew more tense, with contenders accusing each other of making dangerous proposals over debt and pensions.
"The government must drastically cut its spending," Le Pen said when asked how she would fix France's ailing finances. While Melenchon has said he would "chuck" some of France's debt in the fire, Le Pen stressed she would repay it.
Since the pandemic, successive French governments have struggled to get the public finances under control, leaving the country with one of the highest fiscal deficits in the euro zone and record debt at 117% of national output.
Opinion polls consistently predict that anti-immigration, eurosceptic Le Pen will win the first round of the election next April by a large margin, andwill also be well-placed to win the run-off in May.
The latest polls suggest that Melenchon might be her rival in the run-off, while others have pointed to centre-right former Prime Minister Edouard Philippe going to the second round.
INVESTOR JITTERS
Thursday's debate is seen as a big test for Le Pen before company chiefs, who have long been sceptical about her economic credentials. She said the details of her economic programme would be unveiled in the next few weeks.
Centre-left candidate Raphael Glucksmanndrew some applause when he attacked Le Pen on her immigration plans, saying cutting immigration would not fix France's finances. Earlier, Le Pen clashed with former prime minister Gabriel Attal, a centre-right candidate, over debt.
Blue-chip French stocks hit a one-month low earlier in the day as investors fretted about the upcoming budget and political risks ahead of the 2027 election.
Melenchon said one way to slash France's deficit would be to scrap all subsidies to businesses.
Philippe said this was a dangerous idea and he suggested that French people would need to work longer in order for the country to get its public finances in order.
PESSIMISTIC BUSINESS OWNERS
An opinion poll carried out by OpinionWay for MEDEF ahead of the debate showed 82% of business owners are pessimistic about the impact of the next president's policies on the economy — whoever that president may be.
Meanwhile, France faces a particularly perilous annual budget battle in the coming months as parties jockey for position ahead of the election, while anxious investors look for evidence Paris can regain control of its public finances.
Prime Minister Sebastien Lecornu's minority government is due to set its 2027 deficit target in the coming weeks and must submit a bill to parliament by October 6.
Greens leader Marine Tondelier and conservative leader Bruno Retailleau also took part in Thursday's debate.
(Additional reporting by Sudip Kar-Gupta; Writing by Ingrid Melander; Editing by Sharon Singleton and Gareth Jones)
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