In recent developments, France finds itself at risk of being sanctioned by the European Union (EU) due to its deteriorating finances, which could potentially be exacerbated by the economic plans put forth by Marine Le Pen's far-right National Rally party. As President Emmanuel Macron's centrist party braces for an electoral wipeout, concerns arise regarding the impact of these proposed policies on the country's financial stability.

The European Commission issued a rebuke to France, Italy, and five other EU member states on Wednesday for exceeding the bloc's national spending limits. This places these countries in a potential process that could involve fines. Historically, the EU executive has granted flexibility to France, even when it surpassed spending limits. However, with the rise of populist governments across Europe and criticism of the Commission's leniency from fiscally disciplined governments, stricter enforcement is becoming the norm.

Being publicly named and shamed is a significant blow for France, given its large size and pivotal role in the EU. This development coincides with an approaching historic election that could potentially shift France away from the political mainstream for the first time since the establishment of the European nations after World War II. President Macron's decision to call a snap parliamentary election on June 9, following his party's defeat in the European Parliament vote, was intended to counter the far-right's advances. However, opinion polls now suggest a different outcome, with Macron's centrist coalition facing a potential annihilation from both the left and the far right.

As the election takes place over two rounds on June 30 and July 7, by the time France submits its financial roadmap to the European Commission in September to improve its financial situation, new ministers are likely to assume charge of the country's finances. This roadmap could involve a request to extend the "adjustment phase" from four to seven years, allowing for a softer impact of spending cuts. However, a French economy ministry official declined to comment on whether Paris would pursue this option. The Commission plans to issue guidelines on spending reduction in the coming months.

France currently faces a deficit of 5.5 percent of GDP in 2023, the second-highest in the eurozone, with projections indicating an increase over the next two years. Additionally, the country's debt is estimated to be 112.4 percent of GDP this year, making it the third-highest in the common currency area.

Notably, while the National Rally party has tempered some of its extreme economic policies, their emphasis on tax cuts, increased public investment, and a hint of French protectionism remains prominent. Similarly, the left-wing New Popular Front campaign is focused on reversing some of Macron's pension reforms and advocating for lavish spending measures.

As France faces the threat of EU sanctions over its challenging fiscal situation, the outcome of the upcoming election will undoubtedly play a vital role in shaping the country's economic future and its relationship within the European Union.