A court in Paris found Marine Le Pen, the leader of the National Rally faction in the French parliament, guilty of embezzlement of European Parliament funds by the fraudulent hiring of assistants to party deputies, the judge announced on Monday.

"Madame Le Pen has been found guilty of embezzlement of public funds," the judge said.

Another eight other party lawmakers were found guilty, while some 12 deputies were found guilty of "hiding information".

Le Pen was also handed an immediate five-year ban from public office, which will bar her from running in the 2027 presidential race unless she appeals and wins the case.

The ruling marks a catastrophic setback for Le Pen.

On Friday, France’s constitutional council ruled that politicians convicted of crimes can be barred from office immediately.

The far-right leader, the RN, and two dozen party figures were accused of diverting more than 4 million euros ($4.33 million) of European Parliament funds to pay France-based staff. ​They contended that the funds were utilized appropriately and that the accusations had an overly restrictive interpretation of a parliamentary assistant's role.​

Judge Benedicte de Perthuis said Le Pen had been "at the heart" of the scheme.

Le Pen's removal from the race is likely to intensify a debate in France over how judges police politics.

Four-year prison sentence and a fine

The leader of France's National Rally (RN) party also received a four-year prison sentence, of which two are suspended, and a 100,000 euro fine. She is expected to appeal, and these penalties will not be enforced until all appeals are exhausted.

However, her five-year ineligibility to hold public office takes immediate effect, a measure requested by prosecutors, and will only be overturned if her appeal succeeds before the next election, so Le Pen will retain her parliamentary seat until her current term concludes.​

Pivotal moment

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Political analyst Arnaud Benedetti described Le Pen's five-year ban as a pivotal moment in French politics with widespread implications across various parties and the electorate. He stated, "This is a seismic political event. Inevitably, it's going to reshuffle the pack, particularly on the right."

Appeals in France can take months or even years.

Meanwhile, RN President Jordan Bardella, Le Pen's 29-year-old right-hand man, now looks set to become the party's de facto candidate for the 2027 election.

While he has helped expand the RN's appeal among younger voters, experts say it's unclear whether he has the experience to win over the broader electorate the RN needs to secure victory in 2027.

"I am not sure that Jordan Bardella's political proposition is mature enough to be able to compete credibly in the presidential election," Benedetti said.

'Threat to democracy'

Le Pen has denounced the prosecution as an attempt to end her political career, arguing that barring her from office would defy public will and pose a threat to democracy.

A poll conducted by Le Figaro earlier this month suggested that 42% of French voters supported her candidacy for 2027.

While Le Pen appointed Jordan Bardella as RN president in 2021, a senior party official admitted that there was “no plan B” should she be ruled ineligible to run.

Marc de Fleurian, an RN MP for Pas-de-Calais, dismissed concerns about ineligibility, stating, “The question doesn’t arise. It’s not taboo, but as long as we’ve said that such injustice cannot happen, it won’t.”

Some €7 million embezzled

Le Pen and 24 other RN members—including party officials, employees, MEPs, and assistants—were tried in November on allegations of diverting approximately €7 million in European Parliament funds meant for EU staff to pay party workers in France. All defendants have denied the charges.

The members were accused of putting up a scheme for embezzling EU funds to recruit people in France beginning in 2015, with prosecutors saying that National Front eurodeputies, including Le Pen, participated in the scam beginning in 2004.

A conviction would place Le Pen’s political ambitions in jeopardy. She is expected to appeal any guilty verdict, which would delay the enforcement of penalties, including any potential prison term or fine. However, if judges enforce an immediate ban from public office, she may be unable to compete in the 2027 race unless she is exonerated before the election.

Le Pen has remained defiant, stating last week, “I’m not thinking about it. Fear doesn’t remove the danger, so I don’t see any interest in guessing in advance. I consider myself completely innocent of what I have been accused, so if my guilt is declared, then I will use the law to again defend my innocence.”

5 years in prison?

The Paris prosecutor had in November requested a five-year prison sentence and a five-year ban from political office for Le Pen over the debacle.

The proposed prison sentence is "convertible," meaning Le Pen may not necessarily serve time in prison, according to AFP.