Asia’s economies beckon UK, France after Europe’s election earthquakes

“They see Asian tiger economies and political systems as being in a state of transition,” said British political and security analyst Christopher Blackburn. “These countries already have good regional infrastructure. But Europe can help with boosting and accelerating wealth, development, and human potential.”

The cost-of-living crisis that has gripped Britain and much of Europe was a key driver behind the electoral upsets. Inflation has outpaced household incomes, sparking a squeeze on living standards – partly driven by supply disruptions in the wake of Russia’s war with Ukraine.

France’s New Popular Front campaigned on a platform of economic largesse, pledging to raise the minimum wage, cap prices on essentials and scrap an unpopular pension reform that raised the French retirement age.

Though the leftist coalition may have won the most seats, their expansive economic agenda has raised concerns about the country’s ballooning debt levels, which analysts warns are bound to put the economy under stress.

With none of the three main political blocs securing an outright majority, France now faces the challenge of forming a coalition government. The final economic agenda will depend on which alliance takes the lead.

Both Britain and France are likely to need higher welfare spending to address voters’ economic anxieties. That means tax revenues will need to be supplemented by increased trade income.

Initially, the Labour Party did not seem favourably disposed towards the trade pact, but that stance now appears to be shifting. “It seems they are changing their perspective on India,” said TS Vishwanath, a New Delhi-based trade analyst and principal adviser at international trade advisory ASL-Legal.

Starmer has emphasised that