French markets are showing some signs of stabilization, after the far-right leader pledged to work with the head of state if she wins the next election.
The president of the European Central Bank (ECB), Christine Lagarde, stated this Monday that the organization is attentive to the evolution of the financial markets, after her colleague, Philip Lane, stated that he is not worried about the French turbulence.
Lagarde and Lane faced questions, after a week of heightened turbulence in French markets that wiped out around 240 billion euros in market capitalization and caused interest rates on French debt to rise more than comparable German ones.
“Price stability is parallel to financial stability,” Lagarde told reporters on Monday while visiting a quantum computing research center in Massy, southwest of Paris.
“We are attentive to the proper functioning of the financial markets and I think that today, in any case, we continue to be attentive, but that’s it,” he stated, quoted by Bloomberg.
French markets are showing some signs of stabilization after far-right leader Marine Le Pen pledged to work with head of state Emmanuel Macron if he wins the next election.
The legislative elections in France are scheduled for June 30 and July 7since the electoral system provides for two rounds, following the French president’s decision to dissolve Parliament with the notable victory of the RN in the European elections.
In the European elections of June 9, the list headed by Jordan Bardella won, with 31.37% of the votes, more than double the votes obtained by Macron’s party (14.6%).
In third place was the Socialist Party (PS) with 13.83%, followed by França Insubmissa (LFI, 9.89%), LR (7.25%), Os Verdes (5.50%) and Reconquista with the 5.47%.
Also quoted by Bloomberg, the ECB’s chief economist, Philip Lane, was optimistic this Monday regarding the turbulence of last week.
“What we’re seeing in the markets is obviously a reassessment,” he said.
Lane also defended that unjustified measures that “constitute a serious threat to the transmission of monetary policy” should not be applied.
The vice president of the ECB, Luis de Guindos, pointed out, at a conference in Spain, that the price movements have been “orderly, without an extreme impact.”
In a personal capacity, the former Spanish Minister of Finance expressed his concern about recent political events.
“I am concerned about illiberal movements that endanger the European integration process,” he said, quoted by Bloomberg.
“In this world of renationalization, back to internal issues, the only solution is to be more united,” he defended.
Source: Observadora
