Voters in Greece and France reject austerity
Greek voters dealt a blow to the political consensus that has kept Europe's currency bloc intact through more than 2 yrs of crisis, rejecting the German led austerity-for-aid policies that have shielded the country from bankruptcy and a Euro exit.
Greece's vote, combined with Socialist Francois Hollande win over incumbent Nicolas Sarkozy in a French Presidential election, raises pressure on Europe's paymaster to pursue a more growth-oriented approach to the crisis.
But it is not clear whether Chancellor Angela Merkel will take more than symbolic steps in that direction after Sunday's elections.
Voters across Europe have are sending the message, we are not ready to do the reforms, and that is a worry.
The struggle of Greece's 2 big pro-bailout parties: conservative New Democracy and socialist PASOK to secure a parliamentary majority raises questions about whether Athens can stay in the EuroZone in the long run, could spark a new wave of contagion to other member states.
The Greek result puts Hollande, a novice on the International stage who has never held a ministerial post nor met Merkel, in the Hot Seat immediately.
Investors worried about Greece's future and the arrival of the first Socialist in the Elysee Palace in 17 yrs, may punish European financial markets starting Monday, pushing the entire bloc back to crisis mode.
Hollande must put together a new government rapidly and prove that France, which with Germany has led Europe's response to the crisis, is capable of taking the quick decisions needed to keep the 13 anni single currency Zone together. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.