Presidential candidate Marine Le Pen said today that she was considering reintroducing the French Franc as a currency. The way it would work would by having it pegged to the Euro or to the average value of a basket of European currencies. This is the way the ECU operated before the launch of the Euro.
Whether this would ever happen or not is another matter entirely. Le Pen is trying to appeal to a wider audience than just her far right extremist followers. You can interpret ‘appeal’ as ‘tell them anything they want to hear as long as they vote’. We had our own version with the big red bus emblazoned with £350Million for the NHS.
Write off Le Pen
The problem is that with the way that 2016 went, I would not write off Le Pen from winning. Either way if this news story gains traction and people really start to worry that France would leave the Euro then that currency is going to take a bigger hit than the Pound did back in June. As it is it doesn’t look like the markets are taking this story very seriously as the value of the Euro seems pretty much unchanged today.
You can read the original story here: https://sputniknews.com/europe/201701041049258581-le-pen-france-franc-euro/