Melenchon pledges economic stimulus and renews call to leave NATO

what happened

Jean-Luc Melenchon, leader of the France Unbowed (LFI) party, presented his programme for the 2027 presidential election at a rally in Le Bourget, north of Paris. According to Reuters, he promised a policy built on stimulus, with more consumer spending and savings channelled into ecological and social needs. His campaign director, Manuel Bompard, said about 17,000 supporters attended.

The programme includes restoring retirement at 60 for people with 40 years of contributions, raising the net minimum wage to 1,700 euros, abolishing the flat tax on capital income and capping prices for essential foods. Melenchon also called for France to leave NATO, starting with its integrated military command, and for a phase-out of nuclear power that would scrap the EPR2 reactor programme.

Recent polls suggest Melenchon could reach the runoff against Marine Le Pen, but the same polls indicate he would lose in the second round.

why it matters

For markets, the budget pledges matter: the programme implies large spending and tax changes that could affect yields on French government bonds and their spread over German bunds if he won. These are still campaign plans, and their fate depends on the election result.

market impact

Euro and French government bonds: the candidate's budget pledges raise concerns about France's public finances

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