Skip to comments.France, Greece and Germany election results send austerity shockwaves through Europe
Posted on 05/06/2012 8:30:13 PM PDT by bruinbirdman
The stunning victory of the French Socialists and wipe-out of mainstream parties in Greece sent shock waves on Sunday night crashing throughout the continent of Europe.
Supporters of Socialist Francois Hollande celebrate in Paris
François Hollande's election threws down the gauntlet to Angela Merkel, the German Chancellor, who has railroaded the eurozone into agreeing a new "fiskalpakt" treaty enshrining Germany's austerity doctrine.
The economic doctrine of austerity, to cut the burden of state spending to free up the economy, has ruled supreme with the support all of Europe's leaders, the European Union and financial markets.
But political leaders were on Sunday night conceding the consensus had been shattered beyond repair.
With Europe's economies plunging further into recession and as unemployment in the eurozone breaks record levels, voters demands for a new approach had finally become to great to ignore.
The popular backlash to EU imposed austerity to the centrist New Democracy and Socialist parties in Greece threatens the existence of the euro itself.
Greece is potentially ungovernable as a minority government must try and pass a new raft of austerity measures next month which are a condition of an EU-IMF bailout and Greek membership of the euro.
In France, while Hollande, the Socialist President-elect is a centrist, he is sitting on a powder keg of resentment at measures that his government will have to pass if it is not spark a meltdown of financial markets.
He has refused to ratify the treaty unless the eurozone and EU also sign up to a "growth pact".
Mr Hollande also horrified Berlin by sneering at the idea that France should change its constitution to enshrine a "debt brake" outlawing Socialist spending levels.
In a meeting in Berlin next week, Chancellor Merkel is set to warn the French President,
(Excerpt) Read more at telegraph.co.uk ...
It’s hard to think that so many probably fairly educated people can be so utterly clueless. They think all they have to do is demand and wealth will magically flow to them without them having to create it. Talk about a lapse of reality. What these people need are armies of robots to do all the work as they lay on the beaches sipping martinis.
The elite commies are not clueless or dumb. Remember a few things: This is how they make their living. They are godless. Ends justify the means.
They are selling their “Birthright” for a very small bowl of ill tasting pottage. The ChiComs and the Islam-A-Nazis are going to argue over who gets to buy what.
“And children shall rise against parents...”
Stage is set for Global fascism, and its U.S. forced Romneyism.
it’s the problem with a welfare state — it gets people so used to sucking at the govt teats that they don’t know what to do when the cow dies.
“It was all I could do to keep from throwing something at the TV, it sounded so stupid.”
You and I should invest in TV manufacturing stocks.
-—voters demands for a new approach had finally become too great to ignore.——
“New”? As in tried and failed? And tried and failed? And...
——what has to happen to the whole world is massive inflation.....I don’t see how else the world’s debt gets paid....——
Or default, which is also painful. I prefer default, because it would eliminate future entitlement (enslavement) spending, rather than steal from the accumulated wealth of the productive.
Inflation won’t affect the sponging community.
-—It’s hard to think that so many probably fairly educated people can be so utterly clueless.——
It’s a case of wishful thinking or desire overruling the intellect, which is why moral-instruction is as, or more important than, intellectual formation.
I think Sarkozy was trying to cut government spending, and an electorate of socialists doesn’t want to hear that. Hollande promises to “tax the rich” at up to 75% so people don’t have to give up their “free” stuff.
dollar will get better for awhile because there is no other stable place to put it.
bonds? Not if they are going to be used to funnel money the the EU that will never been seen.
The German government's federal bond. The bund is issued to the public as a way for the German government to finance its spending. Like a T-Bill.
Austerity breeds posterity!!!