Mélenchon Puts France's Debt Strategy on the Line in New Electoral Plan

Jean-Luc Mélenchon has outlined a fiscal strategy that challenges standard European monetary practice, proposing that the European Central Bank convert France's sovereign debt into permanent, interest-free loans. The leader of France Unbowed (LFI) presented this plan at a rally in Le Bourget on Saturday, a day after the full policy document went online. The move is designed to free up government spending capacity while the country contends with high budget deficits and existing debt levels.

The programme pairs this debt mechanism with aggressive labor market interventions. Mélenchon proposes lowering the retirement age to 60 and raising the monthly minimum wage to 1,700 euros. He also intends to renationalize specific economic sectors and withdraw France from NATO. To finance these measures, the plan relies on a minimum 2 percent tax on billionaire wealth and the restoration of the wealth tax, a stance LFI argues offsets the cost of increased state spending.

Economists have scrutinized the proposal's impact on capital markets. Some warn that the ambitious spending plans could trigger a sell-off in French government bonds, which would raise the government's borrowing costs. Prime Minister Sébastien Lecornu addressed the debt conversion idea in September, describing the act of borrowing money and deciding not to repay it as essentially theft. This criticism highlights the tension between the party's spending goals and the current macroeconomic constraints faced by Paris.

Mélenchon's approach has found a receptive audience among demonstrators. Student-led protests that began in mid-September have expanded to include groups protesting rising living costs and public service failures. Jacques Reland, a senior research fellow at the Global Policy Institute, described Mélenchon as the vote of these protesters. He noted that the LFI leader's focus on wages, education funding, and welfare measures aligns directly with the demands voiced in recent marches.

Current polling places Mélenchon in the lead for the left camp, with support ranging between 17.5 and 18 percent. He holds a clear advantage over center-left rivals such as Raphaël Glucksmann of Place Publique. Other contenders in the left field include Fabien Roussel of the Communist Party, Marine Tondelier of the Greens, and François Ruffin. Smaller parties are currently deciding whether to back Mélenchon in an alliance, a decision that will shape the campaign's structure.

The candidate's position on international issues adds to the complexity of his bid. He has accused Israel of committing genocide in Gaza and refused to label Hamas as a terrorist organization, a rhetoric that has drawn criticism from some left-wing opponents who argue it fuels anti-Semitism. Despite his strong standing within his base, hypothetical run-off scenarios show him trailing far behind Marine Le Pen of the National Rally, with polls indicating a 70 percent to 30 percent deficit.

Beligh Nabli, a professor of public law at UPEC-Paris XII, placed the party's platform in historical context. He explained that while the emphasis on state intervention appears radical compared to contemporary politics, it is not radical from the perspective of social democracy history. Mélenchon, who is 75 years old, founded the Left Party in 2008 after leaving the Socialist Party, evolving it into LFI. Former allies have criticized his management style as authoritarian, citing internal political disagreements over the party's direction.