While names such as Emmanuel Macron, or Francois Fillon might not be that popular especially for an international reader, the name Marine Le Pen no doubt does. In a wave of protectionist and populist policies that has gripped most of the Western world, Le Pen is another of the famous names that echoes with the U.S. President Donald Trump, UK’s Prime Minster Theresa May.
For the most part, the media has only focused on the immigration policies of Le Pen’s National Front party. While her immigration views and accusations of leaning to the far-right are splashed all over the news, for the average French citizen who goes to polls in April and could potentially decide the fate of France and that of the European Union, there are a lot more things worth considering beyond looking at just Le Pen’s immigration policies.
Le Pen’s Political Manifesto
It doesn’t make sense without looking at the entire manifesto from Le Pen’s campaign; probably something the French voter is faced with, being at the center of this event. Here are some of the most important points from Ms. Le Penn’s 144 point manifesto which can be accessed from here (in French).
1. Re-negotiate the EU deal or face Frexit
Le Pen proposed talks with the EU leadership upon coming to power to renegotiate the nation’s membership. Among the ideas floated included no more euro, cutting access to free border travel and EU budget rules.
This is somewhat similar to what David Cameron had proposed prior to Brexit, Le Pen also promises to hold a referendum on EU membership at the end of the 6-month negotiating period and that she would recommend leaving the EU if the terms are not favorable. Some experts argue even now that Brexit could have been averted if EU leaders took a more concessionary stand with the UK. But on the other hand, doing so would only mean empowering other EU member nations to come seeking favorable terms.
It is unlikely that the EU leadership will give any concessions to France either, making Frexit a possibility under Le Pen.
2. Taking back monetary sovereignty
Le Pen also proposed that leaving the euro currency would mean having to re-denominate its debt stock in the new currency and that the France’s Central Bank will defend the new currency including buying bonds from the government.
The idea of switching currencies has been widely debated but hasn’t been witnessed yet. Greece was the closest that came to being forced out from using the single currency. Logistically it would be a herculean task to implement a switch back to the French franc. Even if there is a Frexit, France will require some grace period to continue using the euro currency.
This is likely to be a key negotiating piece which the EU leaders will most like use to their advantage, making it very difficult for France to even think about abandoning the single currency. Le Pen’s proposal of mandating the central bank to buy government bonds is also not something new and is akin to the ECB currently purchasing the sovereign bonds. However, in the context of the French national bank buying French bonds, the risks of hyperinflation cannot be ruled out which can be disastrous especially without having the euro to fall back upon.
Read more: https://www.orbex.com/blog/2017/03/le-pen-frexit-taking-back-monetary-sovereignty/