French reform drive could slow down
Subject France's reform agenda. Significance On September 7, yellow vest protests resumed in French cities, albeit in small numbers. It is, however, a warning for President Emmanuel Macron that social unrest is still a threat as the government seeks to drive ahead with stage two of its controversial reform agenda. Impacts While France is less exposed to trade disputes than such countries as Germany, recession in the latter would slow France's growth further. Reducing unemployment and avoiding a public sector backlash will be crucial for Macron’s expected re-election bid in 2022. Marine le Pen’s far-right National Rally remains Macron’s only significant political rival, which increases his chances of re-election. Domestic stability will enable Paris to pursue a more assertive foreign policy.