Macron set for success as party dominates French elections

Emmanuel Macron is set for further electoral success as his La République En Marche party appears to be heading towards a landslide victory in the first round of parliamentary elections in France.

The first round of the legislative elections took place on Sunday, with early results on Monday suggesting the new centrist party led by Macron has won 32.32%, ahead of nearest challengers Les Républicains on 21.56% and Marine Le Pen’s Front National on 13.20%.

Macron came out on top in last month’s presidential election, and current projections show that En Marche could take as many as 430 seats in the national assembly, one of the biggest majorities in modern times.

A second round of voting will take place next Sunday in order to finalise the result.

Turnout was sharply down at 49%, compared with the previous election in 2012, when 57% of voters turned out.

Macron came out on top in last month’s presidential election

A comprehensive victory for Macron’s party is largely seen as a market-friendly event, although the CAC 40 index was down almost 1% on Monday at midday.

Barclays analysts have projected French GDP to grow by 1.5% this year and 1.8% in 2018, boosted by company and household confidence.

"Support for our above consensus macro scenario, projecting French GDP to grow by 1.5% this year and 1.8% in 2018, if anything creating upside risks," Barclays said in a research note.

"With a likely clear majority in the lower house, president Macron will be able to lay out a stable and expected policy framework that could boost further companies' and households' confidence, which are already at their highest levels since 2011 and 2007 respectively."

One of Macron’s key economic policies involves loosening France’s extensive labour legislation, and a clear parliamentary majority is likely to pave the way for its introduction in the near future.