Fallout could be bad for all, adding to this – the Greeks voted to keep spending as well…from the Daily Mail:
Au revoir, Sarkozy! Au revoir, austerity! New Euro crisis as French and Greeks reject cuts and vote for return to ruinous spending
- Euro at three-month low as Nicolas Sarkozy is ousted by Francois Hollande
- Markets tumble as uncertainty grows over country’s new Socialist agenda
- Hollande expected to push against German-led European austerity measures
- Exodus of ‘le super-rich’ to London expected in light of planned 75% tax rate
- Greece teetering on collapse as voters reject austerity policies
- Stocks plummet by a massive 8% with country facing weeks of uncertainty
- Greek neo-Nazis triumphant after polling around 7% of the vote
- Analysts warns results could tip single currency into collapse within months
Politicians across Europe were frantically trying to pick up the pieces today after French and Greek voters sensationally rejected austerity in favour of potentially-ruinous high spending policies.
In France Nicolas Sarkozy suffered a humiliating defeat at the hands of Francois Hollande, who ran on a platform of tearing up last December’s controversial deal to save the euro from oblivion.
How did the financial markets take it? Not well. Not well at all:
The Euro plunged to a three-month low as the inexperienced Mr Hollande planned talks with the European Central Bank and German Chancellor Angela Merkel in which he is expected to demand further borrowing to boost growth.
Hollande did say that the financial sector was his “true enemy”:
“My true enemy has no name, no face, no party. He will never stand for election and will never be elected. Despite all this, he is in charge. My enemy is the world of finance,” Hollande declared at a Socialist Party (PS) rally in Paris.
This will not end well, Merkel was weakened in Germany:
Merkel’s Christian Democrats (CDU) scored 30.6 percent, according to ARD public television, with her junior partners at the national level, the Free Democrats (FDP), winning 8.3 percent – not enough to retain power in the northern state.
However, the opposition – combining the centre-left Social Democrats and ecologist Greens – also failed to gain sufficient support to form a government, with 29.9 percent and 13.6 percent respectively.
This left as a strong possibility a so-called “grand coalition” between the CDU and SPD, which many believe could be the final result of the national elections due in September or October 2013.
The big winners on the night were the Pirates, an upstart party that has shaken up the staid world of German politics with a campaign based on more transparency in the political process and internet freedom.