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PARIS — French Finance Minister Bruno Le Maire warned on Tuesday that France could fall into a “debt crisis” and be placed under the supervision of the International Monetary Fund and the European Commission, should the far right or the left-wing alliance come to power in upcoming elections and enact their programs.
“Opening the floodgates to public spending at a time when we should be restoring our accounts will lead to France being placed under the supervision of Brussels and the International Monetary Fund,” Le Maire told Le Monde in an interview. “The next step is already written: austerity and massive tax hikes.”
The French finance minister has attacked the far-right National Rally and the left-wing New Popular Front alliance over costly proposals they have floated ahead of a June 30 parliamentary election.
President Emmanuel Macron’s camp argues that the National Rally measures could cost over €100 billion annually, citing an independent estimate, while proposals from the left-wing alliance could cost up to €268 billion. The National Rally, however, has backpedaled on some of its most expensive ideas.
Le Maire said France could experience the same dire consequences that followed a spending plan presented two years ago by then-U.K. Prime Minister Liz Truss, which resulted in her almost immediate downfall.
His comments come as the European Commission prepares on Wednesday to name and shame France and other 10 EU countries for not respecting EU debt rules.
Le Maire rejected the idea that the markets are anxious due to France’s already worrying budget situation. “Absolutely not! The markets are simply afraid of the economic and financial folly of the extreme left and right.”
