French election: Europe core “pulls closer together”

Emmanuel_MacronThe Dutch elections earlier this year were described as an important test for populism in Europe. The French elections this weekend seem to suggest populism, seen by some as a threat, has greatly diminished.

Funds Europe presents a collection of comments from fund management firms this morning following the victory of Emmanuel Macron.

Philippe Ithurbide, global head of research, strategy and analysis, at Amundi
“Uncertainty is lifted and we can now focus on fundamentals, which have improved significantly over the last few quarters. The specific risk on France disappears, as does the European systemic risk (Frexit).” 

Valentijn van Nieuwenhuijzen, chief strategist and head of multi asset at NN Investment Partners
“The outcome confirms that while populism in Europe remains a threat, it is not the directional force for government policy that it has become in the UK and the US.”

Monica Defend, global head of multi-asset research, Pioneer Investments
“In our view, with the Dutch and French elections now behind us, the biggest threats on this year’s electoral calendar have passed. The appeal of the AfD in Germany is clearly diminishing, therefore the one critical ballot remaining concerns Italy, whose election is likely to take place in Spring next year.”

Stephen Mitchell, head of strategy, global equities at Jupiter Asset Management
“For Europe, this result – and Angela Merkel’s strong showing on Sunday in the Schleswig-Holstein state election – mean the core of Europe pulls closer together. Macron wants to improve relations with Germany, although he is not without protectionist tendencies. The threat of populism in France gains a reprieve that the current upward economic momentum in Europe will assist – this is a reprieve that requires Macron and his parliament, when elected in June, to deliver on promises.”

Adrien Pichoud, chief economist at SYZ Asset Management
“The forthcoming German elections this autumn do not pose the same fundamental risk for the future of European institutions and the single currency. And the main bone of contention of the next parliamentary election in France is no longer the prospect of France eventually leaving Europe, but rather the capacity of the new President to deploy his political programme.”

Kenneth Orchard, global fixed income portfolio manager, T. Rowe Price
“As a committed supporter of the European Union, Macron is expected to work well with German Chancellor Angela Merkel strengthening the Franco-German alliance on which the bloc depends. On Brexit, Macron has emphasised the importance of ‘defending the integrity’ of the EU’s key principles on labour movement and trade. Result: The UK will be facing an even tougher negotiating partner in Brexit talks than previously thought.”

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