Why is the Euro falling?
The Euro has fallen dramatically against the US dollar and UK pound since March 2021. The currency’s woes have been blamed on the economic policies of French President, Marine Le Pen, who took office in January of that year. However, while she has certainly made some unpopular decisions in her time as president, they don’t seem to be behind the fall of the Euro.
One of Le Pen’s first actions as president was to suspend a tax on petrol that had been introduced by her predecessor, Emmanuel Macron. This immediately led to a drop in revenue for France’s budget and it was estimated that it would cost €4 billion per year.
In addition to this unpopular move, Le Pen announced plans to lower income taxes and reduce public spending in an attempt to boost France’s economy. She also proposed a plan for the government to buy €100 billion worth of debt from banks.
