Europe’s future on the ballot
Depending on what happens this weekend, Europe should start bracing itself for a renewed intensification of its sovereign debt crisis.

Article Highlights

  • A Francois Hollande election victory would seriously setback the efforts to defuse the European sovereign #debt crisis

    Tweet This

  • Greece is heading toward an even weaker more polarized government

    Tweet This

  • Europe may need to start bracing for a renewed intensification of the European sovereign #debt crisis

    Tweet This

On May 6, all eyes will be focused on the second round of the French presidential election, which Socialist challenger Francois Hollande is likely to win. Equally important for Europe’s future is the Greek parliamentary election scheduled for the very same day. The Greek election could deliver a government with the slenderest of parliamentary majorities, making it difficult for Greece to honor its official debt obligations and to remain within the Eurozone.

A Francois Hollande election victory would constitute a serious setback for efforts to defuse the European sovereign debt crisis. A Hollande presidency would raise doubts about a united French-German front to address the crisis  because  Hollande is likely to press for more growth-oriented policies in Europe and for a less restrictive European Central Bank than Germany would be prepared to countenance. It would also raise doubts about the future direction of the French economy, in response to Hollande’s proposals to impose a 75 percent tax on the highest income brackets, to raise the minimum wage, and to reduce the retirement age.

The importance of the Greek election resides in its determination of whether Greece will have a sufficiently strong government to implement the stringent conditions of the recently agreed second IMF-EU bailout package. On the eve of the Greek election, the most recent electoral polls are far from encouraging. They show that the combined votes of the New Democratic Party and PASOK, the current ruling coalition government, would amount to only about 36 percent of the votes. Such an outcome would be less than half the combined votes that those two parties polled in elections only two years ago. It would also not be much more than the combined votes likely to be polled by Greece’s hard Left political parties.

Read the full articles on American.com

Desmond Lachman is a resident fellow at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Desmond
Lachman

What's new on AEI

AEI Election Watch 2014: What will happen and why it matters
image A nation divided by marriage
image Teaching reform
image Socialist party pushing $20 minimum wage defends $13-an-hour job listing
AEI on Facebook
Events Calendar
  • 20
    MON
  • 21
    TUE
  • 22
    WED
  • 23
    THU
  • 24
    FRI
Monday, October 20, 2014 | 2:00 p.m. – 3:30 p.m.
Warfare beneath the waves: The undersea domain in Asia

We welcome you to join us for a panel discussion of the undersea military competition occurring in Asia and what it means for the United States and its allies.

Tuesday, October 21, 2014 | 8:30 a.m. – 10:00 a.m.
AEI Election Watch 2014: What will happen and why it matters

AEI’s Election Watch is back! Please join us for two sessions of the longest-running election program in Washington, DC. 

Wednesday, October 22, 2014 | 1:00 p.m. – 2:30 p.m.
What now for the Common Core?

We welcome you to join us at AEI for a discussion of what’s next for the Common Core.

Thursday, October 23, 2014 | 10:00 a.m. – 11:00 a.m.
Brazil’s presidential election: Real challenges, real choices

Please join AEI for a discussion examining each candidate’s platform and prospects for victory and the impact that a possible shift toward free-market policies in Brazil might have on South America as a whole.

No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.