French election poses "greatest existential risk for Europe" - Credit Suisse

PARIS (Reuters) - France's presidential elections pose the "greatest existential risk for Europe," Credit Suisse strategists said on Tuesday, although they added that supportive European Central Bank (ECB) policies could limit the elections' impact on the market.

The Credit Suisse team said a victory for French conservative candidate Francois Fillon - currently under pressure over allegations that his wife had been paid for fake jobs - would be "very positive" for the French economy.

They added that they considered centrist candidate Emmanuel Macron, who has been gaining ground in opinion polls, as a "reformist and a positive for the French economy."

Credit Suisse also said that even if far-right leader Marine Le Pen won, her powers could be limited as her party was unlikely to have a majority in the lower house of parliament.

A poll published on Jan 29 for French newspaper Le Figaro showed Marine Le Pen would come first in the election's first round in April with 25 percent of the votes, while Fillon would garner 21-22 percent and Macron 20-21 percent.

In the runoff on May 7, both Fillon and Macron were seen winning if either was pitted against Le Pen, while Macron would beat Fillon in the knockout, the poll added.

(Reporting by Sudip Kar-Gupta; Editing by Michel Rose)