Market Watch

France Has a New Majority Party

France has a new majority party. Guess what? They don’t think much of the Euro. There are many people currently focused on Italy and Spain. They should be. Their fiscal situation would scare even the hardiest Keynesian. However, it might be prudent to put France back on the radar…..

A party committed to withdrawal from the euro, the restoration of French franc, and the complete destruction of monetary union has just defeated the establishment in the Brignoles run-off election. It is threatening Frexit as well, which rather alters the political chemistry of Britain’s EU referendum. Marine Le Pen’s Front National won 54pc of the vote. It was a bad defeat for the Gaulliste UMP, a party at risk of disintegration unless it can find a leader in short order. President Hollande’s Socialists were knocked out in the first round, due to mass defection to the Front National by the working-class Socialist base. The Front National is now the most popular party in France with 24pc according to a new Ifop poll. Both the two great governing parties of the post-War era have fallen behind for the first time ever.

Ut oh Houston. We have a problem. Everyone knows there is no way any of the major countries can leave the Euro without dissolving the entire thing and possibly sending out a world wide economic shock wave. Lets hope for the sake of the Keynesian’s and ruling elite that they are willing to negotiate a little….

I am watching this with curiosity, since Marine Le Pen told me in June that her first order of business on setting foot in the Elysee Palace (if elected) would be to announce a referendum on membership of the European Union, with a “rendez-vous” one year later:

“I will negotiate over the points on which there can be no compromise. If the result is inadequate, I will call for withdrawal. Europe is just a great bluff. On one side there is the immense power of sovereign peoples, and on the other side are a few technocrats.”

Asked if she intended to pull France of the euro immediately, she hesitated for a second or two and then said: “Yes, because the euro blocks all economic decisions. France is not a country that can accept tutelage from Brussels.”

Officials will be told to draw up plans for the restoration of the franc. Eurozone leaders will face a stark choice: either work with France for a “sortie concerted” or coordinated EMU break-up: or await their fate in a disorderly collapse.

All though Marine Le Pen is not a free market supporter and a critic of cross boarder capitalism, this predicament in France now has all the same catalysts to make it worth watching. Read the whole debacle HERE.

Popcorn:Check. Supplies:Check. This might be better than watching the first Iraq war live on T.V.