{"id":57938,"date":"2023-03-21T11:39:16","date_gmt":"2023-03-21T09:39:16","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=57938"},"modified":"2025-10-16T14:54:36","modified_gmt":"2025-10-16T11:54:36","slug":"macrons-government-survives-by-just-9-votes","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/nl\/macrons-government-survives-by-just-9-votes\/","title":{"rendered":"Macron\u2019s Government survives by just 9 votes."},"content":{"rendered":"

Last night a vote of no-confidence was held in France against the Government of Emmanuel Macron. Following the Government\u2019s decision to \u201cforce\u201d through a highly unpopular change in the retirement age from 62 to 64 years old, protests erupted leading to clashes between protestors and police forces resulting to arrests being made following the vote as claimed by Reuters. The controversial bill met a lot of resistance with many Unions going on strike in an attempt to \u201cforce\u201d the government to change it\u2019s mind. As such fearing the bill would have not passed through the legislative body due to the lack of support, President Macron triggered article 49.3 which allows the Government to force the passage of a bill without a vote unless Parliament votes a motion of no confidence, widely considered the nuclear option and partially undemocratic due to the nature of the article protests erupted all over France. However, following the narrow win in parliament last evening the bill will now go through, effectively raising the retirement age from 62 to 64 in an attempt to curtail the negative effects of an ageing population on the pension schemes. Please note that Macron\u2019s Government invoked the particular article a number of times losing on popularity. Hence we expect the political uncertainty to be maintained in the second largest economy of the Eurozone and thus may weigh on the common currency. Furthermore, ECB President Christine Lagarde was reported stating \u201cThe elevated level of uncertainty reinforces the importance of a data-dependent approach to our policy rate decisions\u201d, similar to the rhetoric repeated by the FED potentially indicating that the ECB will place a heavier emphasis on the data thus increasing the uncertainty of its future rate hikes. In addition, we also note that ECB\u2019s Holzman, a known hawk in the ECB watered down his previous call for three more rate hikes adding more dovishness to the bank\u2019s intentions. On the flip side we also note that ECB policymaker Kazaks implied that the bank may not be over hiking rates yet. Overall though we see doubt about ECB\u2019s hawkish intentions settling in and the balance of power within the bank shifting towards a more cautious approach a scenario that could also weigh on EUR. This morning during the Asian session we note the significance in the discussion of the RBA minutes in which \u201cMembers agreed to reconsider the case for a pause at the following meeting\u201d, implying the impact of high interest rates are being felt and the comment may weaken AUD. Lastly we note the meeting that took place yesterday between President Xi and President Putin in which Putin is quoted by the BBC saying “We’re always open for a negotiation process,\u201d Implying that Russia may be feeling the effects of international sanctions as such and may wish to finish the war sooner rather than later. The meeting may ease tensions in the international relationships, which could support the Aussie. <\/p>\n\n\n\n

\n