A large number of French families have transferred millions of euros to Luxembourg over the last few days, due to the increased likelihood of victory of either an extreme left (Jean-Luc Melenchon) or extreme right (Marine Le Pen).
The financial markets have been spooked by the potential ramifications that success for either of these two candidates could have. Both candidates have promised to leave the Euro, which could mean the return of the Franc, which could cause sharp devaluations and a subsequent impact on any savings.
To compound the impact of either Melenchon or Le Pen being victorious, new legislation gives the French government the power to freeze withdrawals from life insurance plans if there is a financial crisis.
Herve Tisserand of Altaprofits told La Parisien “They feel that if there’s a catastrophe, at least they’ll still have that money”