Key facts
- Jean-Luc Mélenchon cited Spain's Prime Minister Pedro Sánchez as a model for French economic policy.
- Mélenchon proposes an €82 billion "emergency spending" package for France.
- Mélenchon advocates for writing off French debt held by the European Central Bank.
- Spain's deficit has fallen significantly, and its debt-to-GDP ratio is projected to drop below 100% in 2026.
- Mélenchon's funding proposals include a 2% wealth tax and higher inheritance taxes.
- ECB President Christine Lagarde called Mélenchon's debt proposal "dangerous" and potentially illegal.
Jean-Luc Mélenchon, a leading left-wing candidate in France's upcoming presidential election, has pointed to Spanish Prime Minister Pedro Sánchez as an example of how increased public spending can stimulate economic growth and improve public finances. Mélenchon, who is polling neck and neck with center-right candidate Édouard Philippe for a second-round runoff against far-right frontrunner Marine Le Pen, advocates for a "positive demand shock" driven by billions in new state spending.
Under Sánchez, Spain has seen its budget deficit significantly reduced and its public debt is projected to fall below 100% of GDP in 2026. The Spanish government has implemented measures such as raising the minimum wage and investing in green energy, contributing to it being one of Europe's fastest-growing major economies, with the IMF forecasting 2.5% growth in 2026. Mélenchon's campaign proposes an €82 billion "emergency spending" package aimed at boosting purchasing power through higher salaries, welfare benefits, and a monthly payment for students.
Mélenchon also reiterated his controversial proposal to write off billions of euros in French debt held by the European Central Bank, a move criticized by ECB President Christine Lagarde as "dangerous" and potentially illegal. His ally, Eric Coquerel, who heads the National Assembly's finance committee, outlined funding sources for the spending plan, including a 2% wealth tax on households exceeding €100 million and higher taxes on large inheritances. Critics, however, warn of potential capital flight if Mélenchon is elected, citing historical precedent.
Mélenchon attributed France's current financial situation to President Emmanuel Macron's tax cuts, which he described as a "systematic depletion of the state." In contrast, Prime Minister Sébastien Lecornu's government is pursuing a budget with €43 billion in spending cuts to reduce the deficit to 5% of GDP without tax increases. Mélenchon's counter-proposal includes significant additional revenue and spending, aiming to reduce the deficit by approximately €25 billion. Mélenchon also intends to leverage France's EU contribution to advocate for treaty revisions, including the elimination of the 3% deficit target.