Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

EU: Markets braced for shift away from austerity as Francois Hollande wins French election
The Telegraph ^ | 5/6/2012 | Roland Gribben

Posted on 05/06/2012 4:54:11 PM PDT by bruinbirdman

Financial markets are braced for a radical shift in economic policy and fresh question marks over a eurozone break-up, as Francois Hollande moves into the Elysee Palace on Monday as the first Socialist president of France for 30 years.


Mr Hollande's 'farewell to austerity' programme combines taxing the rich, raising
public spending and lowering the retirement age.

A confrontation between the new president and Angela Merkel, Germany's chancellor, is also high on the markets' worry list.

However leading economists believe Mr Hollande will attempt a damage limitation exercise to avoid increasing turmoil in a eurozone facing further upheavals, with result of this weekend's Greek election increasing speculation about an eventual break-up of the fragile currency bloc.

Mr Hollande's 'farewell to austerity' programme, which combines taxing the rich, raising public spending and lowering the retirement age, has raised the expectations of the French electorate about the end of the 'Merkozy' era.

But Ms Merkel is unlikely to cede ground in the face of Mr Hollande's demand for a re-writing of the eurozone fiscal pact.

Christian Jimenez, a fund manager at Diamant Bleu Gestion in Paris, said: "Hollande's victory has already been priced in by markets, however his promises made during the campaign have not been priced in, so there is risk on the downside if he stands his ground when he announces a first set of measures.

"There's a clear need to boost economic growth across Europe, no question, but the debate is on how to achieve that without spooking investors. All in all, Hollande won't be able to convince Merkel to soften her position on the need for austerity."

Chancellor George Osborne appeared diplomatically relaxed at Mr Hollande's victory. "I don't think it's a problem. He's not anti-austerity. He's made it very clear

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: eucrisis; francecrisis; franceelection; francegreeceelection; hollande; hollandewins; sarkozy; stockmarketreaction

1 posted on 05/06/2012 4:54:18 PM PDT by bruinbirdman
[ Post Reply | Private Reply | View Replies]

To: bruinbirdman
Wweeeeeee!!!

I mean "Ouieeeeeeee!!!!"

2 posted on 05/06/2012 4:55:37 PM PDT by E. Pluribus Unum (Do I really need a sarcasm tag? Seriously? You're that dense?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Time to put my 401K back into guaranteed funds?


3 posted on 05/06/2012 4:56:11 PM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

What is the definition of “austerity” that the press is using?

Aren’t those countries still running massive deficits?


4 posted on 05/06/2012 4:56:43 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Maybe they can borrow their way out of debt.


5 posted on 05/06/2012 4:58:36 PM PDT by BinaryBoy (Anyone But Romney)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

How in the heck in this day and age of ecomonic devastation do idiots elect socialists, if not for their own stupidity and greed?

France is Greece.

“Don’t take my government bennies from me!”


6 posted on 05/06/2012 4:58:56 PM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: All

cautionary tale. France’s free riders reached 51%.

vive le freebees..


7 posted on 05/06/2012 4:59:19 PM PDT by newnhdad (Where will you be during the Election Riots of 2012/2013?)
[ Post Reply | Private Reply | To 3 | View Replies]

To: bruinbirdman
which combines taxing the rich, raising public spending and lowering the retirement age

This is a disaster for the French. Their only way out now is repudiation of debts by printing.

8 posted on 05/06/2012 5:02:07 PM PDT by agere_contra
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

the problem with socialism is that eventually you run out of other people’s money


9 posted on 05/06/2012 5:06:52 PM PDT by FatherofFive (Islam is evil and must be eradicated)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Does this Leftist believe that the Tooth Fairy is French? Angela Merkel better have the key to Germany’s treasury secured in her knickers.


10 posted on 05/06/2012 5:09:38 PM PDT by txrefugee
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx
How in the heck in this day and age of ecomonic devastation do idiots elect socialists, if not for their own stupidity and greed?

I believe your question answered itself.

11 posted on 05/06/2012 5:10:22 PM PDT by hinckley buzzard
[ Post Reply | Private Reply | To 6 | View Replies]

To: raybbr

Well, I wouldn’t suggest Government bonds, and there will be a short window where the media has enough folks believing a Democrat control of any one of the 3 parts of the legislative branch will produce a economic expansion, but don’t look for that to last past January.


12 posted on 05/06/2012 5:11:14 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
[ Post Reply | Private Reply | To 3 | View Replies]

To: bruinbirdman

He’s a socialiste, so he must tax the rich if he is to stay true to his ideology. Yes, there will be austerity, but it will be because of economic contraction from a shrinking private sector.
I don’t think that the markets have ‘priced this in’. The euro will drop and the EU will become unglued. Germans still want to save and they want a strong currency. This appears impossible now with Greece, Italy, Spain, Portugal, and now La France.


13 posted on 05/06/2012 5:13:10 PM PDT by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Hey BB Man I just saw CNBC world news just now Euro is trading down against Japanese Yen at this hour


14 posted on 05/06/2012 5:14:03 PM PDT by SevenofNine (We are Freepers, all your media belong to us ,resistance is futile)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

"Donnez-moi mes francs de Hollande!"

15 posted on 05/06/2012 5:18:14 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: raybbr
Time to put my 401K back into guaranteed funds?

I did Friday morning in anticipation of Sarkozy losing and throwing the markets into turmoil. Worst case: I'm wrong and lose a few bucks. Best case, I'm right and I protected my profits.

16 posted on 05/06/2012 5:18:42 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
[ Post Reply | Private Reply | To 3 | View Replies]

To: bruinbirdman

Is this kinda like putting Jerry Brown in power in CA?


17 posted on 05/06/2012 5:19:32 PM PDT by umgud (No Rats, No Rino's)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

And so begins Mr. Hollande’s Opus.


18 posted on 05/06/2012 5:21:24 PM PDT by ichabod1 (Cheney/Rumsfeld 2012)
[ Post Reply | Private Reply | To 1 | View Replies]

To: txrefugee

She does. And she has already brought up the spectre of war if this does not get resolved.


19 posted on 05/06/2012 5:29:57 PM PDT by ichabod1 (Cheney/Rumsfeld 2012)
[ Post Reply | Private Reply | To 10 | View Replies]

To: bruinbirdman

Redistribution of misery.


20 posted on 05/06/2012 5:31:16 PM PDT by Huskrrrr
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

This is not a good omen for France’s wellbeing.

If they repudiate their debt, they won’t be able to borrow more- and what will the French masses do then. And if they repudiate their debt to a foreign power that is willing to employ “self help” in collecting what they lent France in good faith, this could easily lead to another war.

A lot of bad stuff can happen when you try to stiff someone for billions.

I don’t think that France is going to be able to tax themselves out of this mess, regardless of how much they soak the wealthy.


21 posted on 05/06/2012 5:33:45 PM PDT by I_Like_Spam
[ Post Reply | Private Reply | To 1 | View Replies]

To: grumpygresh

“Germans still want to save and they want a strong currency. This appears impossible now with Greece, Italy, Spain, Portugal, and now La France.”

This is why I believe Germany will be the first to leave the Euro. If they don’t, they will end up with a pile of worthless debt from the other Euro countries.


22 posted on 05/06/2012 5:34:41 PM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
[ Post Reply | Private Reply | To 13 | View Replies]

To: onyx
Because they are delusional. They believe they can keep the party going forever just by borrowing and/or printing money. It is over. Lock and load.
23 posted on 05/06/2012 5:39:57 PM PDT by The Old Commander (Anyone who votes for Obama is either delusional or a moron)
[ Post Reply | Private Reply | To 6 | View Replies]

To: hinckley buzzard

Yeah. I reckon so. The Marxist is counting on the same happening here.


24 posted on 05/06/2012 5:41:18 PM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: The Old Commander

You betcha. Lock, load and reload.
Reellion is ON!


25 posted on 05/06/2012 5:42:52 PM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: The Old Commander

Rebellion.
I lost that “B”.


26 posted on 05/06/2012 5:43:52 PM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: bruinbirdman

“Mr Hollande’s ‘farewell to austerity’ programme, which combines taxing the rich, raising public spending and lowering the retirement age, has raised the expectations of the French electorate about the end of the ‘Merkozy’ era.”

Amazing.

At least this is going to be entertaining to watch.

And a cautionary tale for others wanting to follow suit...


27 posted on 05/06/2012 5:47:36 PM PDT by DB
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mister Da

I think Germany will take the Netherlands, the Flanders region of Belgium, Austria, Finland and several eastern European countries with them if Germnay decides to leave Eurozone. And Norway, Sweden and Denmark may join them, too.


28 posted on 05/06/2012 5:47:56 PM PDT by RayChuang88 (FairTax: America's economic cure)
[ Post Reply | Private Reply | To 22 | View Replies]

To: onyx

I just hope the convention is wild and we have a candidate who is has conservative principles and a fighting spirit.


29 posted on 05/06/2012 5:49:00 PM PDT by little jeremiah
[ Post Reply | Private Reply | To 25 | View Replies]

To: agere_contra

Can they even do that? are they a hybrid system or Euro only?

“From 1 January 1999, the value exchange rate of the French franc against the euro was set at a fixed parity of 1 EUR=6.55957 FRF. Euro coins and notes replaced the franc entirely between 1 January and 17 February 2002.”

— Wiki

They can’t print more unless they convince the EU to print more..


30 posted on 05/06/2012 5:52:42 PM PDT by N3WBI3 (Ah, arrogance and stupidity all in the same package. How efficient of you. -- Londo Mollari)
[ Post Reply | Private Reply | To 8 | View Replies]

To: bruinbirdman

expect wide spread inflation in Europe with all the rich flocking towards Switzerland, gold/silver to protect their wealth


31 posted on 05/06/2012 6:10:06 PM PDT by 4rcane
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL

this is why fake right wingers annoy me, like Romney. There will no austerity under his admin as the economy continue to slide downhill, but the media will call it that


32 posted on 05/06/2012 6:11:49 PM PDT by 4rcane
[ Post Reply | Private Reply | To 4 | View Replies]

To: onyx; bruinbirdman; newnhdad; hinckley buzzard

“How in the heck in this day and age of ecomonic devastation do idiots elect socialists, if not for their own stupidity and greed?”

It’s rather simple....

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.”
- Alexis de Tocqueville


33 posted on 05/06/2012 6:19:15 PM PDT by aquila48
[ Post Reply | Private Reply | To 6 | View Replies]

To: bruinbirdman

Did anyone on earth think the Europeans were going to give up the goverment teat?

These “austerity” requirements to get more funding were jokes. Bad ones.


34 posted on 05/06/2012 6:40:58 PM PDT by A.Hun (Common sense is no longer common.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: raybbr

Yep. France sees the answer to failed socialism as even more socialism. I think there will be downside to financial markets but this will drag on for a long time. I have moved quite a bit to bonds lately.

http://finance.fortune.cnn.com/2012/05/04/french-election-sarkozy-hollande/?iid=HP_Highlight&hpt=hp_t2


35 posted on 05/06/2012 6:43:46 PM PDT by plain talk
[ Post Reply | Private Reply | To 3 | View Replies]

To: 4rcane

Romney has NEVER claimed that he is a right winger....he is what he is and what he is is NOT obamey ( still won’t capitalize his dang name)


36 posted on 05/06/2012 6:48:15 PM PDT by cherry
[ Post Reply | Private Reply | To 32 | View Replies]

To: SevenofNine
"Euro is trading down against Japanese Yen "

Down against the greenback, too. Under $1.30.

yitbos

37 posted on 05/06/2012 7:16:48 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
[ Post Reply | Private Reply | To 14 | View Replies]

To: agere_contra

Watch as the exodus of productive people out of France begins.


38 posted on 05/06/2012 7:20:26 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
[ Post Reply | Private Reply | To 8 | View Replies]

To: bruinbirdman

Early retirement from 30 hr work weeks and 40 week years. Yeah, that should work.

Pray for America


39 posted on 05/06/2012 7:31:56 PM PDT by bray (Power to We the People)
[ Post Reply | Private Reply | To 1 | View Replies]

To: N3WBI3
"They can’t print more unless they convince the EU to print more.."

Hollande has lots of comrades on his side outside Kermitville.

EU's [Commissioner for Economic Affairs] Olli Rehn signals end of 'Merkozy' austerity drive.

The EU ain't dead yet. They haven't even begun to print money.

And there is still plenty of private property to confiscate.

yitbos

40 posted on 05/06/2012 7:33:52 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
[ Post Reply | Private Reply | To 30 | View Replies]

To: bruinbirdman
He must have taken notes from Obama’s destruction of America and thought it would work perfectly in France.
41 posted on 05/06/2012 7:37:21 PM PDT by AlaskaErik (I served and protected my country for 31 years. Progressives spent that time trying to destroy it.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: aquila48
"a democracy always collapses over loose fiscal policy, always followed by a dictatorship. "

This is why the EU Commission was set up. Commissioners are APPOINTED by national governments to eliminate constituencies' demands for the treasury.

EU has not yet given the Commission fiscal authority (Ireland and Greece have).

The U.S.A. started on the right track when state legislatures elected Senators. The 17th Amendment did away with that just after income tax was introduced in the 16th Amendment and a few months before the Federal Reserve was established.

yitbos

42 posted on 05/06/2012 7:46:14 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
[ Post Reply | Private Reply | To 33 | View Replies]

To: bruinbirdman

“Mr Hollande’s ‘farewell to austerity’ programme, which combines taxing the rich, raising public spending and lowering the retirement age, has raised the expectations of the French electorate about the end of the ‘Merkozy’ era. “

They will now tax and spend their way to prosperity. I just don’t know why somebody else didn’t think of this first.


43 posted on 05/06/2012 10:15:06 PM PDT by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

WOW I hear that before bedtime on CNBC world news YIKES


44 posted on 05/07/2012 9:27:05 AM PDT by SevenofNine (We are Freepers, all your media belong to us ,resistance is futile)
[ Post Reply | Private Reply | To 37 | View Replies]

To: bruinbirdman

You’re In The Belly Of Sodom?

Yodeling Is The Best Offense, Seriously?

Yellow Irises Turn Brown On Sewage?

Yentl Is Terrific, Barbra’s only Showstopper?

?


45 posted on 05/07/2012 11:12:49 AM PDT by Eepsy
[ Post Reply | Private Reply | To 40 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson