Hollande vs The Euro

The French Elections will certainly have an impact on the Euro and should Francois Hollande defeat President Sarkozy, the impact could be significant.

The Socialist leader has promised to renegotiate the European Union Fiscal Compact and has promised to concentrate on growth rather than austerity…..quite where this growth will come from remains to be seen of course. Hollande’s stance could well cause tensions with Germany if not managed properly, leading to a crisis in confidence in the Eurozone’s two most powerful members. Bond yields could soar yet again and whatever strength the Euro still holds against it’s major trading counterparts could be diminished.