Understanding Financial Implications of the French Election

Chautauqua Capital Management's Managing Partner, Brian Beitner, discusses the global systemic implications for banking and trade following the French Election in an article for Advisor Perspectives.

During a period of major political change around the world, Emmanuel Macron, the 39 year old newly elected president of France, plans to reform the country following Europe's most devastating financial recession. The multi-year debt crisis created by member states of the Eurozone severely impacted the value of the euro.

While there are no immediate investment implications, Macron's election is significant. By defeating the opposing candidate Marine Le Pen, a strong critic of the euro, France will keep the euro as the national form of currency. A French exit from the euro would have created serious concerns for all other nations in the Eurozone and collapse France's pension and social security systems. Macron's election should strengthen the Eurozone and discourage any large departures from the Euro by other member nations. 

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Chautauqua Capital Management is a division of Robert W. Baird & Co. The opinions are those of the author and subject to change.