Le Pen Woos Business Leaders in Presidential Debate, Pledges Fiscal Discipline

Far-right leader Marine Le Pen sought to reassure France's business community on Thursday, pledging during a presidential debate with key rivals to put the country's public finances back on track if she wins power next year. The debate, organized by France's main business lobby MEDEF, brought together leading candidates from across the political spectrum, offering a preview of the economic and fiscal battles that will define the 2027 election campaign.

The event began with Le Pen, hard-left candidate Jean-Luc Mélenchon, and other contenders exchanging smiles and handshakes, but the tone quickly grew tense as candidates accused each other of making dangerous proposals on debt and pensions. For Le Pen, the debate represented a significant test before company chiefs who have long been sceptical about her economic credentials. She said the details of her economic programme would be unveiled in the coming weeks.

"The government must drastically cut its spending," Le Pen said when asked how she would fix France's ailing finances. In contrast to Mélenchon, who has said he would "chuck" some of France's debt into the fire, Le Pen stressed that she would repay it. Her remarks were aimed at positioning herself as a fiscally responsible alternative to both the hard left and the current administration, which has struggled to rein in public spending since the pandemic.

Since COVID-19, successive French governments have failed to bring public finances under control, leaving the country with one of the highest fiscal deficits in the euro zone and record debt equivalent to 117% of national output. The deteriorating fiscal position has become a central issue in the election campaign, with investors and international partners closely watching for signs that France can regain control of its finances.

Opinion polls consistently predict that Le Pen, who leads the anti-immigration, eurosceptic National Rally party, will win the first round of the election next April by a large margin and is well-placed to win the run-off in May. However, the identity of her likely opponent in the second round remains uncertain. The latest polls suggest that Mélenchon might be her rival, while others point to centre-right former Prime Minister Edouard Philippe advancing to the final round. The uncertainty has fueled investor anxiety, with blue-chip French stocks hitting a one-month low earlier in the day as markets fretted over the upcoming budget and political risks ahead of the election.

Centre-left candidate Raphaël Glucksmann drew some applause when he attacked Le Pen on her immigration plans, arguing that cutting immigration would not fix France's finances. Earlier, Le Pen clashed with former prime minister Gabriel Attal, a centre-right candidate, over debt management. Attal has positioned himself as a defender of fiscal orthodoxy, warning that radical proposals from either the far-right or the hard-left could destabilize the economy.

Mélenchon proposed that one way to slash France's deficit would be to scrap all subsidies to businesses, a suggestion that Philippe called "dangerous." Philippe, who served as prime minister under President Emmanuel Macron, suggested that thFrench people would need to work longer in order for the country to get its public finances in order. The exchange highlighted the deep divisions among candidates over how to address France's fiscal challenges, ranging from austerity and spending cuts to tax increases and subsidy reductions.

An opinion poll conducted by OpinionWay for MEDEF ahead of the debate revealed that 82% of business owners are pessimistic about the impact of the next president's policies on the economy, regardless of who that president may be. The figure underscores the deep unease among France's business community, which fears that political instability and fiscal mismanagement could undermine the country's competitiveness and deter investment.

France faces a particularly perilous annual budget battle in the coming months as parties jockey for position ahead of the election. Prime Minister Sébastien Lecornu's minority government is due to set its 2027 deficit target in the coming weeks and must submit a bill to parliament by October 6. The outcome of the budget negotiations will be closely watched by investors seeking evidence that Paris can regain control of its public finances.

Greens leader Marine Tondelier and conservative leader Bruno Retailleau also participated in Thursday's debate, each presenting their own visions for France's economic future. Tondelier emphasized green investment and social justice, while Retailleau focused on security and traditional values. However, the spotlight remained firmly on Le Pen, whose strong poll numbers have made her the candidate to beat.

As the election campaign intensifies, the debate over fiscal policy, immigration, and economic reform will continue to dominate the political agenda. For Le Pen, winning over the sceptical business community remains a critical challenge, while for investors, the stakes are high: France's fiscal credibility and economic stability hang in the balance.