Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

France's Macron pledges 15-billion-euro green push after vote rout

Published 06/29/2020, 06:29 AM
Updated 06/29/2020, 10:01 AM
© Reuters. French President Emmanuel Macron meets French citizens' council over environment proposals in Paris

By Elizabeth Pineau and Michel Rose

PARIS (Reuters) - French President Emmanuel Macron promised 15 billion euros ($16.9 billion) of new funding on Monday to speed up moves to a greener economy, a day after the Greens trounced his party and took control of big cities in local elections.

Macron said he would move faster on environment-friendly policymaking and that he was ready to call a referendum in 2021 on revising the constitution to include climate goals if parliament allowed it. But he stopped short of promising one.

Macron was responding to proposals by a Citizens' Climate Council he set up in response to the "yellow vest" movement that sprang up as a backlash against the cost of living but became a rebellion against him and his pro-business reform agenda.

"The challenge to our climate demands we do more," he told members of the climate council in the Elysee Palace's garden, hoping to burnish his green credentials for the final two years of his presidency.

He made no reference to Sunday's vote, in which his LaRem party failed to win in any big city, leaving Macron, 42, without a local power-base as he eyes a possible bid for a second term as president in 2022.

The Greens won control of cities including Lyon, Bordeaux and Strasbourg, often in alliance with leftist allies, and is a junior partner in the winning Socialist-led alliance in Paris. It could also still emerge victorious in Marseille.

"We were given a real slap in the face, it's really brutal," Bruno Bonnell, a LaRem member of parliament, told Reuters.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

CHANGE OF PRIME MINISTER?

Bonnell said Macron should replace Prime Minister Edouard Philippe, who is from the conservative right, adding: "If we get back to doing half-baked right-wing policies, we'll get another drubbing in regional elections".

But another ruling party member told Reuters that Philippe, who won back his old mayoral seat in Le Havre, was "really solid" and should remain prime minister.

Ditching Philippe would help Macron start afresh, but the prime minister's popularity has risen as he calmly guided France through the coronavirus crisis.

Sacking him now could create a potential rival for Macron in 2022. Asked about Philippe's future, a source close to Macron said "continuity" would be the order of the day. "I can't see why we should change the prime minister," a government minister close to Macron said.

A government reshuffle is likely next week, after Macron gives it some consideration, another government source said.

Macron supported many measures proposed by the 150-member Citizens' Climate Council, but rejected others that would have clashed with his pro-business agenda.

He backed a proposal for a moratorium on new commercial zones in city outskirts, and said he would consider bringing in a new law against "ecocide", defined by the council as any action causing serious environmental damage.

But Macron said a proposal for a 4% tax on dividends to help finance new greener policies would discourage investments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.