BRUSSELS ― President Emmanuel Macron’s shock decision to call an election has led France’s finance industry to fear it might not become Europe’s powerhouse after all. it sent through the markets weren't bad enough in creating feelings of unease, industry insiders, feeling betrayed, argue the vote will also hamstring Paris’ ambitions to become the EU’s top finance hub.
The French president and his finance minister, Bruno Le Maire, have been vocal in the bloc’s push to create a single market for investmenta “capital markets union.” What went unsaid was that Paris would claim a large share of the prize if the EU fostered deeper capital markets. For now, however, the French business elite’s hopes for Paris’ attractiveness as a center of investment and a business-friendly capital are somewhat dashed.
The people POLITICO spoke with all expected the CMU project to take a major hit if either the far right or far left enter Matignon. Despite fears around a future far-right or far-left government’s plans to pursue sweeping economic reforms, France's economic establishment could water down more radical ideas which could be put forward, the people said. One person said the situation in France could play out like U.K. economic reforms under Liz Truss in 2022, where the government wasits plans amid market turmoil and opposition from the central bank and national regulators. Truss resigned over the furore.