Mr Hollande's 'farewell to austerity' programme combines taxing the rich, raising
public spending and lowering the retirement age.
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 ...
I mean "Ouieeeeeeee!!!!"
Time to put my 401K back into guaranteed funds?
What is the definition of “austerity” that the press is using?
Aren’t those countries still running massive deficits?
Maybe they can borrow their way out of debt.
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!”
cautionary tale. France’s free riders reached 51%.
vive le freebees..
This is a disaster for the French. Their only way out now is repudiation of debts by printing.
the problem with socialism is that eventually you run out of other people’s money
Does this Leftist believe that the Tooth Fairy is French? Angela Merkel better have the key to Germany’s treasury secured in her knickers.
I believe your question answered itself.
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.
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.
Hey BB Man I just saw CNBC world news just now Euro is trading down against Japanese Yen at this hour
"Donnez-moi mes francs de Hollande!"
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.
Is this kinda like putting Jerry Brown in power in CA?
And so begins Mr. Hollande’s Opus.
She does. And she has already brought up the spectre of war if this does not get resolved.
Redistribution of misery.
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.
“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.
Yeah. I reckon so. The Marxist is counting on the same happening here.
You betcha. Lock, load and reload.
Reellion is ON!
Rebellion.
I lost that “B”.
“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...
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.
I just hope the convention is wild and we have a candidate who is has conservative principles and a fighting spirit.
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..
expect wide spread inflation in Europe with all the rich flocking towards Switzerland, gold/silver to protect their wealth
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
“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
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.
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.
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)
Down against the greenback, too. Under $1.30.
yitbos
Watch as the exodus of productive people out of France begins.
Early retirement from 30 hr work weeks and 40 week years. Yeah, that should work.
Pray for America
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
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
“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.
WOW I hear that before bedtime on CNBC world news YIKES
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?
?
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.