French court clears path for conservative presidential candidate, but house arrest threatens campaign

close Video Trump says he was 'testing' NATO allies after Iran operation, says Italy, Germany and France turned him down President Donald Trump said during a bilateral meeting with Turkish President Recep Tayyip Erdogan that he was "testing" NATO allies after the U.S. operation against Iran, naming which European countries let him down. NEWYou can now listen to Fox News articles! Hören Sie sich diesen Artikel an 3 Min A French appeals court upheld the embezzlement conviction for conservative former presidential candidate Marine Le Pen on Tuesday, but shortened a ban on her running for elected office, clearing her path to run for president in 2027, albeit mandating she wear an ankle monitor for a year. France's Paris Criminal Court originally found Le Pen guilty of embezzlement in 2025, accusing her and other members of her conservative National Rally party of using millions of dollars in E.U. funds to pay aides for domestic French political work. Le Pen denies any wrongdoing. Le Pen was originally sentenced to five years in prison, with two years suspended and three years on house arrest. In the French system, the two suspended years would serve as a warning, while Le Pen would be expected to serve the three years on house arrest. Her sentence also carried a five-year ban from running for political office, barring her from running in France's 2027 presidential election. However, an appeals court ruled Tuesday that Le Pen's sentence would be reduced to three years, with two suspended and the remaining year to be served as house arrest, according to a court statement obtained by Fox News Digital. MUSK SLAMS LE PEN RULING, SAYS IT WILL 'BACKFIRE' LIKE TRUMP'S AS SOME ON GLOBAL RIGHT FACE LEGAL TROUBLES National Rally parliamentary group president Marine Le Pen arrives to attend the verdict in the appeal trial of RN former or actual members on charges of embezzlement of European public funds in a case of alleged European Parliament fake jobs at Paris Court of Appeal on July 7, 2026. (Kenzo TRIBOUILLARD / AFP via Getty Images) The ruling also shortened her ban from running for office to 45 months, 30 of which are considered to be suspended. Given that the court considered her suspension active starting from initial sentencing in March 2025, the ruling means Le Pen is eligible to run for office effective immediately. However, if she were to decide on a presidential run, she would have to do so while serving the house arrest sentence, a prospect she has already cast doubt on. "If I'm allowed to be a candidate but am effectively prevented from campaigning freely, then you understand that wouldn't be possible," she told French media Wednesday. Le Pen, along with 11 other associates, were found guilty of a litany of crimes related to the misuse of public funds. Le Pen herself was found guilty on charges of misappropriating public funds and complicity in the misappropriations of public funds. "The court found that an organization had been set up to allow the European Parliament to cover the remuneration of parliamentary assistants for National Front (which became Rassemblement National) MEPs, whereas their activities had no connection with the mandate of their MEP and they were actually working for the national political party," a press release from the Paris Court of Appeals read. French President Emmanuel Macron holds a press conference on July 10, 2025, in London, England. (Leon Neal) The release claimed the defendants misappropriated €2.8 million, which the court ordered them to pay it back in restitution. Le Pen, for her part, admitted that some staff paid as EU staffers were relegated to domestic French work, but she claimed it was simply a mistake and not, as alleged, part of a scheme to divert E.U. funds to her National Rally party. French right-wing party National Rallly (RN) president Jordan Bardella (L) and President of National Rally parliamentary group Marine Le Pen hug as they attend a RN party event "La fete champetre" in Lievin, northern France on July 4, 2026. (SIMON WOHLFAHRT / AFP via Getty Images) Le Pen, according to The Associated Press, immediately went from the courthouse to National Rally headquarters to strategize the party's future plans. She is expected to address the country in a news conference or interview Tuesday night. Her legal team at the courthouse said, "We ⁠are considering the decision as a whole. We will issue a further statement. We are partially satisfied," according to Reuters. Fox News Digital contacted representatives for National Rally and the Paris appeals court for further comment.