France’s Macron faces important election test

Significance

Given the proximity to next year’s presidential election, President Emmanuel Macron and his main rival, National Rally (RN) leader Marine Le Pen, view the regional elections as an important opportunity to test electoral strategies and build momentum.

Impacts

• Seeking re-election could force Macron to mute his backing for the EU-China Comprehensive Agreement on Investment (CAI).
• He will likely use the economic crisis to campaign for more flexible EU fiscal rules and further EU fiscal cooperation.
• Macron will intensify efforts to tackle climate change, but be careful to not anger the working classes or those living in rural areas.