Macron's political crisis hurts business morale ahead of Paris Olympics

PARIS : As President Emmanuel Macron welcomes business leaders including Elon Musk to Paris ahead of Friday's Olympic opening ceremony, there are early signs France's political deadlock is hurting business sentiment and affecting corporate decision making.

Data released by the country's statistics office on Thursday showed French industry morale unexpectedly slumped in July, after a snap legislative vote called by Macron left France in the hands of a caretaker government as it hosts the world's largest sporting event amid heightened security fears.

Macron said this week that his outgoing government will remain in place until after the Games, when he will seek to name a prime minister. He has rejected the candidate proposed by a leftist alliance, urging a broader coalition.

Tesla's Musk and LVMH boss Bernard Arnault are among CEOs lunching with Macron on Thursday at an investment summit.

The heads of Coca-Cola, Samsung, TikTok and others will also be present, while more than 100 heads of state will attend the Olympic opening ceremony along the Seine river.

A Macron adviser told reporters last week that the president will use the summit to assuage fears about the political crisis.

"Of course, this event will be a bit special, after the political events of the past few weeks. The goal will be mainly to explain to foreign chief executives the choices made by the president, the dissolution (of parliament) in particular," the adviser said.

"For foreign investors, what matters is the policy that's been carried out, continuity and stability, providing certainty. And the president will seek to reassure the CEOs attending about the choices he made."

Macron has defended his decision to dissolve parliament after a thumping by the