No more “austerity” for France. Not that there ever was any cutting of government. “Austerity” in France was tax increases. Now they aren’t even going to do that. They are going to borrow their way to prosperity.
On Sunday, Sarkozy became only the second French president to fail to claim a second mandate since Valéry Giscard d’Estaing was swept out of office in 1981.
It was also the first time the Socialist Party won a presidential contest since Mitterrand’s re-election in 1988.
The Socialist president-elect, who has emerged as a new champion for Europe’s anti-austerity camp, was expected to call German Chancellor Angela Merkel on Sunday evening.
Of course France does not have its own currency so it is going to run into some Greek style issues with interest rates. France, however, is a much larger part of the European Union than is Greece. Expect to see tension with Germany has France immediately begins its campaign to debauch the shared currency. This should be interesting. History has shown that when Germans are economically isolated and placed in debt against their will, they become very unhappy.
Speaking of debauched currency… If you do the grocery shopping for your family, you have already noticed the insidious tax being used to cover the US debt… inflation.