France’s Finances to Come under Further Strain Whoever Wins Election

 A voter prepares to cast a ballot at a polling station for the first round of the parliamentary elections in Paris, Sunday June 30, 2024. (AP)
A voter prepares to cast a ballot at a polling station for the first round of the parliamentary elections in Paris, Sunday June 30, 2024. (AP)
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France’s Finances to Come under Further Strain Whoever Wins Election

 A voter prepares to cast a ballot at a polling station for the first round of the parliamentary elections in Paris, Sunday June 30, 2024. (AP)
A voter prepares to cast a ballot at a polling station for the first round of the parliamentary elections in Paris, Sunday June 30, 2024. (AP)

Already under scrutiny from ratings agencies, financial markets and Brussels, France's public finances are likely to come under more strain no matter what the outcome of a snap parliamentary election, which starts with a first round of voting on Sunday.

The main parties have all promised new spending but their plans to pay for it are short on detail and do not always stack up.

Polls indicate that the far-right National Rally (RN) will come first, followed by the New Popular Front left-wing alliance and President Emmanuel Macron's Together trailing in third.

The outgoing government had promised to cut the budget deficit from 5.5% of Gross Domestic Product last year to a European Union ceiling of 3% by 2027 - an objective that may be unattainable after the vote, which concludes with a second round on July 7.

FAR-RIGHT NATIONAL RALLY

If it forms a government, the RN wants as soon as July to cut value added (VAT) sales tax on energy, which it says would cost 7 billion euros for the rest of this year and 12 billion in a full year.

The RN says it would be financed by obtaining a 2-billion-euro rebate on France's EU budget contribution, although the bloc's 2021-27 budget has long since been voted into the books.

The party is counting on big gains from ramping up a levy on exceptional profits from power producers and replacing a tonnage tax on shipowners with normal corporate tax, although that sector's bumper profits of recent years is likely to subside.

The RN also wants to annul a cutback in the duration of unemployment benefits due from in July, a move that the outgoing government says would cost 4 billion euros.

Further out, the RN aims to index pensions to inflation, reduce the retirement age to 60 for people who started work at 20 or before, exempt some workers under the age of 30 from income tax and raise teacher and nurses wages.

It also wants to go ahead with cuts in local business taxes that the current government has had to suspend because they could not be afforded.

The RN would also scrap a 2023 increase in the retirement age to 64 from 62, replacing it with a more progressive system which remains to be specified. The party says it would stick with existing plans to cut the budget deficit in line with France's commitments to EU partners.

Targeting welfare spending on foreign citizens and cutting red tape, the RN has pledged to go head with 20 billion in budget savings this and next year, which the current government has struggled to come up with and detail.

It further wants to renegotiate the European Central Bank's mandate to give it a new focus on jobs, productivity and financing long-term projects.

LEFT-WING NEW POPULAR FRONT

The New Popular Front (NFP) alliance says its first moves would include a 10% civil servant pay hike, providing free school lunches, supplies and transport while raising housing subsidies by 10%.

It says that it can cover the cost by raising 15 billion euros with a tax on superprofits, which remains to be detailed, and reinstating a wealth tax on financial assets, also for 15 billion euros.

Additionally the group wants to freeze prices of basic food items and energy while raising the minimum wage by 14% with subsidies for small firms that cannot otherwise cope.

The alliance would then in 2025 hire more teachers and healthcare workers, step up home insulation with subsidies, boosting public spending by an additional 100 billion euros.

It says the cost would be covered by closing tax loopholes, making income tax much more progressive, restoring the wealth tax on financial assets and setting a maximum inheritance for families of 12 million euros.

From 2026, public spending would reach 150 billion euros annually, notably by increasing the culture and sports ministries' budgets to 1% of GDP.

The NFP would also scrap the 2023 increase in the retirement age and wants to eventually reduce it to 60. The alliance says the extra spending would be financed by tax hikes and stronger growth, but it does not plan to reduce the budget deficit and rejects the EU's fiscal rules.

CENTRIST 'TOGETHER' ALLIANCE

While Macron's party is committed to cutting the budget deficit to 3% of GDP by 2027, institutions from the national auditor to the IMF had serious doubts even before the snap election was called.

Since then, the party has pledged to cut power bills by 15% from 2025 and to match pension hikes to increases in inflation. It says that it will raise public sector wages, but its program does not say by how much.

The party remains committed to no broad tax hikes and will increase the amount parents can gift children tax-free.



Mexico Eyes Trade Expansion, Targets Saudi Market with Premium Rice Exports

Rice products at a commercial market in Saudi Arabia (SPA)
Rice products at a commercial market in Saudi Arabia (SPA)
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Mexico Eyes Trade Expansion, Targets Saudi Market with Premium Rice Exports

Rice products at a commercial market in Saudi Arabia (SPA)
Rice products at a commercial market in Saudi Arabia (SPA)

Mexico is preparing to expand its trade ties with Saudi Arabia by exporting high-quality rice to the Kingdom, sources told Asharq Al-Awsat.

They said Mexico has an export offer for three premium rice varieties that meet the highest international standards.

Saudi Arabia imports limited quantities of Mexican rice, mainly for use in Mexican cuisine and restaurants.

The latest initiative reflects the Kingdom’s position as one of the world’s largest rice consumers, with per capita consumption averaging 45.77 kilograms annually, the highest among plant-based food products.

Around 70 percent of consumption consists of basmati rice, while total annual imports exceed 1.3 million tons.

According to the information obtained by Asharq Al-Awsat, the Saudi Ministry of Foreign Affairs received a request from the Mexican Embassy in Riyadh conveying the interest of the Mexican state of Nayarit in exporting premium rice to the Saudi market.

The embassy said three varieties are available for export: Super Extra Whole Grain Rice (long grain) with a monthly supply of 120 tons; Milagro Super Extra Rice (polished broad grain) with a capacity of 30 tons per month; and Morelos rice, an additional premium-grade variety.

Saudi Arabia has previously taken steps to encourage private-sector imports of Cambodian rice in a move aimed at diversifying supply sources alongside imports from India, Pakistan, the United States and Egypt.

Strong demand for favored rice varieties in Saudi Arabia and across the Gulf, combined with challenges such as rising shipping costs and climate-related disruptions, has occasionally led to price fluctuations. These factors have prompted the Kingdom to broaden its supplier base to ensure the availability of this commodity and maintain price stability.

The government recently decided to increase Pakistani rice imports to account for 20 percent of total needs, reinforcing supply stability and food security.

Forecasts suggest that per capita rice consumption in Saudi Arabia could rise to around 50 kilograms annually in the coming years, up from the current 45.77 kilograms, underscoring rice’s central role in the Kingdom’s food industry and traditional cuisine.


Capricorn Energy Sees Production Boost, Driven by Growth in Egypt

People run to catch a tram in the coastal city of Alexandria, on February 18, 2026. (Photo by Khaled DESOUKI / AFP)
People run to catch a tram in the coastal city of Alexandria, on February 18, 2026. (Photo by Khaled DESOUKI / AFP)
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Capricorn Energy Sees Production Boost, Driven by Growth in Egypt

People run to catch a tram in the coastal city of Alexandria, on February 18, 2026. (Photo by Khaled DESOUKI / AFP)
People run to catch a tram in the coastal city of Alexandria, on February 18, 2026. (Photo by Khaled DESOUKI / AFP)

Oil producer Capricorn Energy said on Monday it expects higher production in 2026 compared with last year, supported by the expansion of its Egypt operations.

In May, the Scottish company and Egyptian General Petroleum Corporation (EGPC) agreed to merge eight concessions ⁠in Egypt into a ⁠single deal under a joint venture with Cheiron Oil and Gas.

Capricorn expects 2026 production in the range of 18,000-22,000 barrels ⁠of oil equivalent per day (boepd), boosted by the agreement with EGPC and growth in the region.

Capricorn CEO Randy Neely said, "We have entered 2026 with strong momentum as our 2025 exit rate of 21,003 boepd and robust balance sheet ⁠position ⁠us to capitalize on development opportunities on the merged concession."

According to Reuters, Capricorn Energy also said it continues to evaluate M&A opportunities in the UK North Sea, Egypt and general MENA region.

The company forecast 2025 production between 17,000 and 21,000 boepd.


US to Stop Collecting Tariffs Deemed Illegal by Supreme Court on Tuesday

LOS ANGELES, CALIFORNIA - FEBRUARY 20: Shipping containers stand stacked while others rest on truck transport chassis at the Port of Los Angeles on February 20, 2026 in Los Angeles, California. Mario Tama/Getty Images/AFP
LOS ANGELES, CALIFORNIA - FEBRUARY 20: Shipping containers stand stacked while others rest on truck transport chassis at the Port of Los Angeles on February 20, 2026 in Los Angeles, California. Mario Tama/Getty Images/AFP
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US to Stop Collecting Tariffs Deemed Illegal by Supreme Court on Tuesday

LOS ANGELES, CALIFORNIA - FEBRUARY 20: Shipping containers stand stacked while others rest on truck transport chassis at the Port of Los Angeles on February 20, 2026 in Los Angeles, California. Mario Tama/Getty Images/AFP
LOS ANGELES, CALIFORNIA - FEBRUARY 20: Shipping containers stand stacked while others rest on truck transport chassis at the Port of Los Angeles on February 20, 2026 in Los Angeles, California. Mario Tama/Getty Images/AFP

The US Customs and Border Protection agency said it will halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the Supreme Court declared the duties illegal.

The agency said in a message to shippers on its Cargo Systems ‌Messaging Service (CSMS) ‌that it will de-activate all tariff ‌codes ⁠associated with President ⁠Donald Trump's prior IEEPA-related orders as of Tuesday.

The IEEPA tariff collection halt coincides with Trump's imposition of a new, 15% global tariff under a different legal authority to replace the ones struck down by the Supreme ⁠Court on Friday.

CBP gave no reason why ‌it was continuing ‌to collect the tariffs at ports of entry days ‌after the Supreme Court's ruling, and its message ‌offered no information about possible refunds for importers.

The message noted that the collection halt does not affect any other tariffs imposed by Trump, including ‌those under the Section 232 national security statute and the Section 301 unfair ⁠trade practices ⁠statute.

"CBP will provide additional guidance to the trade community through CSMS messages as appropriate," the agency said.

Reuters reported on Friday that the Supreme Court decision made more than $175 billion in US Treasury revenue generated by the IEEPA tariffs subject to potential refunds, based on an estimate by Penn-Wharton Budget Model economists.

Their estimate from a ground-up forecasting model showed that IEEPA-based tariffs were generating more than $500 million per day in gross revenue.