France's Business Climate in Turmoil Amid Political Uncertainty

France's business leaders express concern over political volatility and its impact on the economy, particularly ahead of the parliamentary election. The potential rise of far-right and left-wing parties threatens President Macron's pro-business reforms, leading to fears of higher taxes, inexperienced policymakers, and possible corporate bankruptcies.

France's business elite is grappling with political volatility, inexperienced policymakers, street protests, and potential bankruptcies. Executives in Provence, ahead of Sunday's parliamentary election, express deep concerns about the political climate.

Corporate leaders, benefiting from President Macron's reforms since 2017, fear the far-right and left-wing's intent to reverse key policies, such as raising the retirement age and scrapping the wealth tax, will hinder the business environment.

As polls predict Macron's party's defeat, business leaders worry about the ramifications of a potentially unstable coalition government. Higher financing costs, driven by political uncertainty, could lead to more corporate defaults and jeopardize investment decisions.

(With inputs from agencies.)