Jean-Luc Mélenchon, as the leading leftist candidate in the upcoming presidential election in France, pointed to Pedro Sánchez, the Prime Minister of Spain, as a successful example of how to improve public and economic finances. In a press conference focused on the budget, Mélenchon stated, "Since the approval of a budget that focuses on ecological and social growth, Spain has witnessed sustainable growth and a reduction in debt."
Increase in Government Spending
Mélenchon, 75, emphasized the need to create a positive demand shock through billions of euros in new government spending during this conference. He also reiterated his proposal to cancel France's multibillion-euro debts held by the European Central Bank. This proposal has faced severe criticism, including from Christine Lagarde, the President of the European Central Bank.
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Debt-to-Growth Ratio
Polls show that Mélenchon is closely competing with Édouard Philippe, the center-right candidate, for a spot in the second round of the presidential election. While Pedro Sánchez has significantly reduced Spain's budget deficit under his leadership and it is expected that the debt-to-GDP ratio will fall below 100% by 2026, Mélenchon aims to boost economic growth by increasing purchasing power and wages, including raising the minimum wage and providing more payments to welfare recipients.
Mélenchon's financial plan includes a package of emergency spending worth 82 billion euros. Éric Coquerel, a supporter of Mélenchon and the head of the Finance Committee of the National Assembly of France, emphasized at the same press conference that this spending will contribute to GDP growth and increased tax revenue.
Mélenchon also criticized the financial decisions of Emmanuel Macron, the current President of France, stating that these decisions have led to a reduction in government financial resources. He pointed out the polarization between Macron's budgets and positive cycles of social and ecological growth, stating that new reforms should be sought.
The current French government has proposed a budget with a reduction in spending of 43 billion euros, aiming to reduce the budget deficit to 5% of GDP. However, it is expected that this year's budget deficit will reach 5.4%.
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