Marine Le Pen Vows to Introduce New Franc at Parity with Euro if Elected

Marine Le Pen is a highly controversial presidential candidate in the French elections which are set to take place on April 23rd, and according to her latest statements on Wednesday for RTL radio, if elected president, she will introduce the new Franc at a rate of 1-1 to the Euro and then it will allow it to float free/fluctuate.

It’s interesting to note that Le Pen said previously that France’s new currency will be the opposite of a free floating Franc, i.e. will be pegged to a basket of currencies.

According to her wishes, the Franc would most probably fall against the German currency, whatever that is, most probably the Euro. And a “cheaper” currency, i.e. the new Franc would make French exports like cars, wines and cheese (I am only kidding) more competitive. Also she believes that the Franc will rise against the currency in Italy, which momentarily uses the same Euro just like Germany and France, hinting that Italy too may leave the Eurozone in the future.

Even if Le Pen’s statements from Wednesday may seem far fetched to many of you reading this article, incidentally Paddy Power agrees with Le Pen’s predictions, offering even odds for Italy leaving the European Union before 2025, which is way higher than the odds of Greece leaving the EU and remember that Greece’s economy is in shambles for years now.

Le Pen offered contradictory views about leaving the Eurozone during the presidential campaign. It’s not very clear what she really thinks about the fine details with regard to achieving monetary sovereignty, i.e. whether it’s going to be a free floating Franc currency or a controlled one. The chief of Natixis Securities, Patrick Artus mocked her inconsistencies, saying that:

“Monday she’s out of the euro, Tuesday she’s not, Wednesday she pegs, Thursday she fluctuates,”

Le Pen believes that leaving the Euro currency would be better off for France, as the country was doing great in terms of trade prior to joining the European Union. Le Pen is expected to win easily the first round of the presidential election and to lose categorically the second round on May 7th, with Macron (her Nemesis) credited to getting 61,5% of the votes.

However, we’ve already heard it all  before from the mainstream media with Donald Trump, “he’ll never win the primaries, he’ll never be president” etc.

Source: Bloomberg