A shock election win for France¡¯s leftist alliance has reinforced wariness among investors who had already braced for the risk of political deadlock and a policy paralysis that¡¯s unlikely to improve the country¡¯s creaking public finances.
The left-wing New Popular Front (NFP) alliance won the most seats in Sunday¡¯s election ¡ª a big surprise after Marine Le Pen¡¯s far-right National Rally (RN) led opinion polls ¡ª but fell far short of an absolute majority.
France, at the center of the euro project and the bloc¡¯s second biggest economy, still faces a hung parliament and taxing negotiations to form a government as markets had already anticipated ¡ª just with the left in pole position, rather than the far-right.
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