France weighs state-backed loans to fix far-right campaign financing problem

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PARIS — Officials working for French Prime Minister Sébastien Lecornu have met with banking executives to explore ways to ease financing issues faced by the National Rally and other parties ahead of next year’s presidential election.

An aide from the prime minister’s office, granted anonymity to discuss sensitive issues, told reporters that officials discussed ways to help politicians get bank loans to finance their presidential campaigns. One option on the table is a loan agreed between several banks and including a partial state guarantee.

In France, unlike the US and other European countries, political donations for election campaigns are strictly capped, and presidential candidates depend on bank loans to finance campaigns, which are then partially refunded by the state.

Far-right leader Marine Le Pen has often struggled to secure a loan despite heading one of the most popular parties in France, with banks wary of perceived reputational damage that comes with financing the far right.

“It’s essential that all the candidates, whatever their political creed, can access French funding to finance their campaign,” said the aide from the prime minister’s office.

Lecornu’s initiative aims to avoid the interference of a “foreign financing network.” In the past, the National Rally has obtained loans from Russian and Hungarian banks.

A person close to Lecornu, also granted anonymity to speak freely, however, said that the prime minister’s office was not “negotiating on behalf” of the far right.

“It’s as false as it is absurd. We are opponents, and there have been no discussions between the PM’s office and the National Rally on the subject,” the person said. The initiative would also benefit other smaller candidates.

Victor Goury-Laffont contributed to this report.