can political uncertainty have consequences for our economy?

Sunday June 19, the second round of the legislative elections did not give an absolute majority to Emmanuel Macron. “This news of an ungovernable France made the front page of all the economic press around the world. It was notably taken up in all the trading rooms”explained the journalist Axel de Tarlé, Monday, June 20, on the set of France 2.

“France is one of the biggest borrowers in the world. We borrow 200 billion euros every year. Do you want to lend to an ungovernable government that does not want to make the reforms it has promised ? Potentially, he might not pay you back”warned the journalist. “This comes at a time when interest rates are rising worryingly in countries deemed not serious”, said Axel de Tarlé. On Monday morning, France’s 10-year interest rate remained stable at 2.208%. But the journalist warned about this “high risk day”where the rate could increase.