19 October 2024

The rise and fall of Macronomics

Giorgio Leali

When Emmanuel Macron came to power in 2017, he was hailed as the business-friendly former Rothschild banker who would turn France into a world-beating investment destination by slashing public spending and lowering taxes.

Seven years later, the French president’s economic credentials are in the dock.

Thursday's eye-watering budget adjustment — €19.4 billion in tax increases and €41.3 billion in spending cuts — is a stark sign that France's money management has veered off the rails on Macron's watch.

The president's political opponents are relishing his sudden fall from grace on fiscal helmsmanship — and are sharpening their knives.

Traditionally, Macron always sought to score political points by styling himself as the adult in the room on economic files. In this year's parliamentary election campaign, he slammed both far-left firebrand Jean-Luc Mélenchon and far-right leader Marine Le Pen as irresponsible profligates who would topple France into the financial abyss.

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