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.
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