France’s Macron will struggle to implement key goals

Significance

Macron aims to raise the retirement age, improve the business environment, cut unemployment and promote a green energy transition in the next five years. To do so, he plans only to bring the fiscal deficit down to 3% of GDP by 2027.

Impacts

• Macron’s commitment to defence spending may hurt spending in other areas, such as health and social policy.
• A centre-left majority after June’s legislative elections would make it very difficult for Macron to implement his main policies.
• France will campaign strongly to reform EU fiscal rules in a way that would allow higher spending in certain areas.