Interesting day ahead for European politics! France and Greece go to the polls. In both instances, this will be the first chance that either electorate gets to pass judgement on those politicians and parties who have presided over the Euro-mess of the past few years! I forecast Hollande will defeat Sarkozy in the French election and that the two major Greek Parties on the right and left will get a drubbing. In both cases, the electorate will reject “austerity” and instead support “investment”.
As you know “investment” is a EU-phemism for spending money that the Government does not have. The primary cause of the economic crisis afflicting the EU was central Governments spending that which they could not afford – today will see a massive endorsement for more of the same! We have an electorate satiated with Government largesse and demanding that it continues at all costs. They will get their wish, with a vengeance. It’s clear that Germany aside, there is little desire from the other EU countries to ease off on the drug of Government spending and borrowing so the obvious consequence should be that Germany leaves the EU. That’s when the deck of cards will really collapse.