The week in the currency market began calmly enough so it is worth a moment to bend over what is happening in the economic policy. While in Poland we are just dealing with another redistribution of income, candidate for president of France is clear: such a policy led us to the brink of the abyss.
Francois Fillon, those were his words, is now officially the Republican candidate for president of France. In the elections will have to face with mainly a populist candidate of the National Front, but at this moment he is the favourite. Many, therefore, indicates that his announced change in economic policy can be translated into reality. And announcements are very far-reaching: raise (yes, increase) the retirement age, reduce taxes for businesses and individuals the highest earners, an increase in VAT, lengthening the work week, and more generally unpopular moves.
Of course, France is not the only country that can make this kind of change, but was for many years associated with this kind of economy, where the free market is mixed with socialism. Fillon did not even attempt to pretend and for the question of conducting the debate what he would do to keep the French model of social welfare said, “What model? The one that generated 6 million unemployment? The French model is leaking from all sides. “
Interestingly National Front, which initially advocated a free market solutions now radically changed the approach and promises to maintain and even increase social advantages of the French. Therefore it promises to be extremely interesting campaign, which can even determine the direction for the whole of Europe in this hot election period. The first round of elections in France is scheduled for April 23 next year.
After a quiet Monday, today the economic calendar begins to thicken. Within the publication is worth paying attention to two reports from the US: the second estimate of GDP for the third quarter (14:30) and the most important index of consumer sentiment Conference Board (16:00). The dollar needs good data, in order to maintain market dominance, which in turn is not conducive to Polish Zloty (PLN). In addition, you should expect the culmination of rumors and speculation before tomorrow’s OPEC meeting. The cartel announced production cut, but it is still not known whether it will materialize, so oil prices will be quite violent.
PhD Przemysław Kwiecień
