French tech sector faces uncertainty ahead of elections Amid political extremes

The French tech sector, thriving under President Macron's pro-tech policies with significant investments and growth, is now apprehensive as extreme political outcomes loom ahead of elections.

Macron's initiatives, including tax breaks and funding for startups, have fostered a fertile environment for tech innovation, Caliber.Az reports citing foreign media.

However, concerns mount that a victory by far-right or far-left parties could reverse these gains, potentially impacting immigration policies, economic stability, and international relations with Brussels.

Tech leaders fear potential disruptions to foreign investments and innovation if policies shift towards nationalism and austerity measures, potentially altering France's tech landscape fundamentally.

Les Halles used to be the French capital’s belly, hosting the city’s main food market. Today, the market has moved out of town, replaced by a slew of successful tech startups.

An extreme French government could pursue sovereignty, including digital sovereignty, provoking a potential clash with Brussels. Both the far right and far left are Euroskeptics.

While the far-right RN no longer talks about leaving the euro, it still does harangue against Brussels and talks about cutting French contributions to the EU.

Admittedly, Macron’s push for French tech is equaled by his fervor to promote “digital sovereignty.” He imposed a special digital tax on US tech platforms. He fought for Europe to implement its own semiconductor subsidy program. And he supported adding sovereignty requirements in an EU Cloud Certification to limit US cloud providers from bidding on European public contracts. The anti-American bent is clear: Macron has warned against “following” the US.

But in reality, Macron has proved pragmatic. When Mistral AI announced a partnership with Microsoft for cloud services, the president applauded. Google has signed joint ventures with the country’s premier defense contractor Thales.

The future of France and French tech remains uncertain. Under Macron, a strong foundation has been built for growth and innovation. If forced, Mistral AI could pick up and move across the Atlantic Ocean, following many other promising European startups. Will new rulers really want to throw away this tech success?