After the military welcome that Macron offered Trump last week on the Champs Elysees, it seems appropiate to examine closely French new government resolutions in terms of military spending, and more specifically their plans for one of France defense crown jewel Thales.
Nick Ottens | Emmanuel Macron has come under criticism for creating an “imperial” or “Jupiterian” presidency in France. Don’t mistake the president’s theater for putting style over substance. The goal is economic reform.
France’s new, more liberal regime could refuel the polemic yet again over the necessity or otherwise of the government having an investment portfolio as it does at the moment. This “holding” is valued at close to 80 billion euros.
New French president Emmanuel Macron wants to solve the problem of the stability of the euro and its finances once and for all, by implementing some kind of European Fiscal Union.
France has a financial system worth seven billion euros, compared with Germany’s four billion or the Spanish financial system’s three billion (because of Santander and BBVA). But the Bank of France’s balance sheet is supported by the CFA franc.
Making democracy work certainly is no mean task but one way of understanding the victory of Emmanuel Macron in France is reason beating irrational fears. Or as Macron himself has said: you convince people “by speaking to their intelligence.”
Emmanuel Macron’s success in the presidential elections has alleviated fears France might fall into the black pit of extremism. But he faces the huge task of delivering growth by sweeping reforms while preserving most of the current social model. A task that will prove elusive unless he secures solid parliamentary backing.
Investors realise that the political risk in France has decreased substantially and are less concerned about what might happen on the political front in Italy and Germany. Now it’s time to look at companies’ fundamentals once again and continue to focus on the ECB’s decisions over the coming months.