David Chazan examines the effects the upcoming presidential election \are already having on the French economy in this articles. Millions of euros have been transferred by French families to Luxembourg. Many are afraid of the consequences of the economic plans put forth by the candidates, Marine Le Pen and Jean-Luc Melenchon. Both have plans to stop using the euro and many families feel they are protecting their money from the French government by moving it to Luxembourg. The two candidates are in an extremely tight race with the outcome of the election being seen as unpredictable. I understand why the citizens of France would be worried about these economic plans. However, I think that if too many people send their money out of the country, it could cause an economic downturn.
https://uk.news.yahoo.com/spooked-french-savers-send-money-131724423.html
4 comments:
I agree with the point that too much outflow of money is definitely not a good thing to the national economy. This will not only decrease national savings but also consumption. It will bring troubles to national economy. Last week I read a report said because of the Brexit, more investment will be pushed into Europ instead of England because of the relatively stable politic situation. From this report, it seems not that true. At least not that true for France. I want to see how the policy issued by new president will influence the national and international investment.
Because of Britain existing EU, the situation of EU is already volatile. France, as a member of EU, will have to face not only the effect of Brexit but also the effects of the upcoming presidential election. There should be a lot of uncertainty what's going to happen next. I wondered how will the government and market react.
If France remains in the EU following the election of a pro-EU government, it would follow that they could stand to benefit from Brexit as they might fill some of the gaps left behind by the U.K.
I agree with the comments that are being said. since this race is so tight if one of these candidates gets the population that he will be able to handle the financials in a responsible way they would win. I agree that having a lot of money leaving the country is not good because this will have a snowball effect and the problems will get larger.
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