Mélenchon's economic plan outlines major spending increases

Jean-Luc Mélenchon’s political party, La France insoumise (LFI), has proposed an economic program that includes 82 billion euros in new spending over six months. This includes measures like lowering the retirement age to 62, providing free school meals, and creating 10,000 new teacher and healthcare worker positions. The plan is significantly larger than the 548.9 billion euros allocated in the current state budget for 2027.

The program's fiscal strategy involves significant tax increases

The economic plan also calls for 106 billion euros in new tax revenue, primarily through closing tax loopholes, eliminating certain taxes, and targeting the wealthiest individuals. Measures include ending the flat tax, imposing a tax on large assets, and increasing inheritance taxes. However, experts say these tax changes may not generate the full 106 billion euros needed to cover the proposed spending.

Economic experts and business leaders express deep concerns

Business leaders and economists have raised alarms about the potential consequences of the plan. They warn that the program could lead to economic stagnation, job losses, and a collapse of small and medium enterprises. One expert warns that the plan could cause an immediate budget crisis, leading to France defaulting on its debt within weeks. Others question whether the strategy would work in a country that imports more than it exports.

Risks of capital flight and reduced investment loom

The proposed tax increases on the wealthy have raised concerns about capital flight, where wealthy individuals might move their assets abroad. Experts note that the targeted wealthy are more likely to leave the country if taxed heavily. Some entrepreneurs have already mentioned considering suspending investment projects or leaving France if Mélenchon wins the election.

Mélenchon's political momentum grows

Despite concerns, Mélenchon’s campaign is gaining strength. He has a strong organization and a well-structured campaign, drawing large crowds at his events. Analysts note that his momentum is increasing, especially after a left-wing primary victory by Raphaël Glucksmann, which has opened space for Mélenchon on the left. Some observers believe the risk of him reaching the second round of the presidential election is growing.