How Macron got ensnared by the chaos of his own election gambit

Good morning from Bari, where in a luxury resort down the Adriatic coast from the city, G7 leaders will in a few hours begin their 48-hour summit. Officials last night were hopeful of clinching a deal on a loan for Kyiv raised against the future profits from immobilised Russian assets, but key details remain unresolved.

Today, our correspondent in Paris brings you the latest chaos unleashed by France’s unprecedented snap election, and our climate correspondent reveals that more than half of EU companies that will have to declare their environmental impact in six months haven’t started preparing.

Le bordel

You know France has gone off script when President Emmanuel Macron is batting off rumours he might resign, six weeks out from the Paris Olympics that were supposed to be a crowning moment of glory, writes Sarah White.

Context: Macron shocked France and Europe by calling a snap parliamentary election on Sunday, after his party received a drubbing by Marine Le Pen’s far-right Rassemblement National (RN) in the European parliament elections.

Facing the press yesterday, Macron swung into combative mode, a routine he has finessed over his seven years at the Élysée fielding crises from the gilets jaunes street protests to his response to the Covid-19 pandemic. This time, however, Macron had questions over his own destiny to answer.

“It’s time to wring this duck’s neck,” Macron retorted when asked whether he could resign before his term is up in 2027 — using a colourful French expression to refer to his rumoured resignation, a plan that, he added, “never existed”.

The 46-year-old, who came to power as an centrist upstart seeking to break the “right or left” political spectrum, thundered against the extremes, with harsh words for the far left, too, as he warned voters of the incoherence of his rivals’ economic plans.

Macron accused others of being defeatist and “contemplating only disaster”, insisting he saw a scenario under which voters would cast their ballots differently, having expressed their anger by voting far right during the European election.

Adding to the general sense of chaos, his centre-right rivals Les Républicains kicked their own leader out of the party yesterday after he suggested an electoral pact with the RN.

From Paris business circles to Brussels, and even within Macron’s own party, the possibility that the RN could gain sufficient seats in parliament to form the next government is creating alarm. RN could then name a prime minister — potentially Le Pen’s protégé Jordan Bardella — and fill cabinet posts.

RN ministers representing France at EU ministerial councils could dramatically alter the bloc’s direction, and the potential policy paralysis between government and president in its second-largest country could freeze the wider EU legislative machine.

EU officials are therefore unlikely to give Macron much respite over his election gambit. Many expect him to get a barrage of questions from his bewildered fellow leaders at a dinner on Monday.

Chart du jour: Making ends meet

Here’s a fact that could help explain the rightward shift in last weekend’s European elections: last year, 21 per cent of the EU’s population was at risk of poverty or social exclusion, according to Eurostat.

Due date

Less than half of the companies affected by new EU environmental reporting requirements have started preparing, although the first reports are due in six months, writes Alice Hancock.

Context: Brussels will require tens of thousands of businesses to disclose their environmental impact from 2025. The rules will first target larger companies and include SMEs from 2026, quadrupling the number of companies that already have to disclose their environmental footprint. Certain foreign companies operating in the EU will be included.

But a PwC study published today shows that only two-thirds of companies are very confident that they will be ready for the new rules, while less than half have started key preparations such as checking whether they have the necessary data.

About 60 per cent of EU and non-EU companies surveyed said that data availability and the complexity of their supply chains could be hindering their efforts to comply.

Red tape associated with Brussels’ sustainability agenda became a major issue for politicians on the campaign trail for EU elections last week. Reducing paperwork is a key part of the agenda of the European People’s party (EPP), which won the most votes.

Nadja Picard of PwC Germany, however, said that many companies supported the new rules. They “will increase reporting requirements for many companies, but many expect this to lead to better environmental performance . . . Companies also expect to see revenue growth and cost savings”.

“The move towards mandatory sustainability reporting is the future, it’s just a matter of time,” Picard said.

What to watch today

1. G7 leaders’ summit begins in Bari, Italy.

2. Nato defence ministers meet in Brussels.

3. EU home affairs ministers meet in Luxembourg.

Now read these

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• Pivotal moment: The future of the EU’s Green Deal hinges on whether Ursula von der Leyen will turn to the far right — or to the Greens.

• Under the microscope: European regulators are increasingly scrutinising Microsoft’s deals and business practices.