Le Pen’s franc pledge: I’ll dump euro

FRANCE: France will move swiftly to ‘‘take back control’’ by abandoning the euro and restoring the franc if Marine Le Pen wins this May’s presidential election, one of her top advisers has revealed.

Bernard Monot, the economic strategist for Le Pen’s National Front, predicted this ‘‘new franc’’ could fall by as much as 20 per cent against the single currency. He also warned that France’s 2 trillion euros (NZ$2.96T) of debt would be denominated in the new currency – producing what critics argue would effectively be the largest default in financial history.

‘‘We want to take back control of our national borders. Countries need frontiers to regulate capital, goods and people.’’

Monot, 54, a former financier, said Le Pen would negotiate a transition to the new franc within six months of winning power.

His party’s leader would demand the creation of a ‘‘multicurrency European zone’’ with countries sharing a virtual unit of accounting for trade, he said.

This would be similar to the European Currency Unit, a basket of currencies used by member states in the 20 years leading to the introduction of the euro in 1999.

Monot, a member of the European parliament, said he had held discussions with Mario Draghi, president of the European Central Bank, Pierre Moscovici, the European commissioner for economic and financial affairs, and Jeroen Dijsselbloem, who heads the eurozone group of finance ministers.

‘‘They are all capable of understanding that if France leaves the eurozone and the European Union then there is no more euro and no more European Union.’’

Analysts have warned of chaos in the markets, a flight of capital abroad and soaring interest rates if Le Pen wins. Monot denied his party’s plan constituted a default.

‘‘I’m a man of the markets. One wants to reassure the financial markets and our international creditors that France is a country of the rule of law and will repay her debts.’’

Le Pen is expected to win the first round of the election on April 23. Polls suggest she would be easily beaten in the second-round runoff two weeks later, either by the conservative Francois Fillon or the independent centrist Emmanuel Macron.

– Sunday Times