Author: Pimnipa Booasang
Pro-reform and sees France's role as one of the EU's main pillars as necessary.
self-employedCorporate tax cut, from 33% to 25%, residence tax cut, and inheritance tax reform. 120,000 public sector jobs to be cut, with public spending to be slashed by EUR 60 billion. Unemployment target of below 7%. More flexible labor laws, protection for the self-employed
Although Macron's policy and promised reform bode well for the French economy and the Eurozone, there is a strong possibility of a political gridlock, which would halt his agenda. Macron still needs to gain a majority in the French Parliament in the upcoming legislative elections on 11 and 18 June. It is highly likely that he won't be able to, and will need to form a coalition. Such a scenario means not all of his plans for economic and social reforms will come to fruition as promised during the campaign
Figure1 and 2: Investors' confidence in French and Eurozone economy continually on the rise since the first round of French elections
Source: EIC analysis based on data from Bloomberg
Figure 3: Cars and parts, computers and parts are Thailand's key export products to the EU and the UK
Source: EIC analysis based on data from the Ministry of Commerce