Almost three months after Emmanuel Macron was elected President of France, following a convincing victory over far-right candidate Marine Le Pen, attention now turns to the policies he intends to enact over the next five years. Mr Macron’s proposed labour market reforms, due to be set out in full later this year, will play an important role in shaping the economic future of France. If he is able to push these through, France’s long-term prospects will improve materially. Committed to reforming Europe from the inside, Mr Macron has his sights set on increasing the level of integration between member states. Were Angela Merkel to remain in power after next month’s German elections, then it is possible to conceive of an upside scenario for the euro area in which a system of fiscal transfers, necessary to ensure the long term viability of the currency, is finally put in place. It would become, in short, a proper economic and monetary union. Were this transformation to take place, and admittedly it remains very much an outside chance, then we would become much more optimistic, not just about France, but about the region as a whole.