Shares in BNP Paribas, France’s biggest bank, fell by close to 8 per cent at the opening and was trading 5.3 per cent lower on Monday afternoon, while shares in French lenders Credit Agricole and Societe Generale also suffered heavy losses.
The companies were among the biggest fallers on the pan-European STOXX 600 index, alongside French highway operators Eiffage and Vinci, which also traded around 5 per cent lower.
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Macron’s unexpected decision could hand major political power to the far-right after years on the sidelines, and put Marine Le Pen’s National Rally (RN) party in charge of the domestic agenda, including economic policy.
Among policies put forward by the party, the RN has proposed higher public spending, despite already significant levels of French debt, threatening to further raise funding costs at French banks.
The RN has also proposed to nationalise French motorways to reduce road tolls by 15 per cent.
French gas and electricity firm Engie also fell 4.5 per cent, heading for its biggest intraday decline in more than a year, while smaller renewable energy specialist Voltalia was down 6.5 per cent.
“The National Rally’s programme on renewable energies is characterised by strong opposition, particularly on wind and solar energy,” said Pierre-Alexandre Ramondenc, utilities and renewables analyst at Alphavalue.
The RN plans to dismantle existing wind farms and has long opposed the construction of new installations in favour of an almost exclusive focus on nuclear energy, he added.
Despite investor concerns, industry questioned whether the RN would proceed with its stated policies. Motorways are a major contributor to state finances, said a source close to ASFA, the association of French motorway companies.
“The concessions are tax collectors and pay half of their revenue to the State. Calling them into question would be a dangerous signal for France’s rating,” said the person, declining to be identified on political matters.