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French presidential election and its effects on Eurozone

Thursday, May 17, 2012


In his victory speech at City Tulle, Holland, a member of the Socialist Party, has promised to make all-out effort to help the country emerge from the current crisis, while creating equal access to health care and educational services for all citizens.

The new president has made his commitment to justice, equality, and the younger generation. But it is not an easy task for him to fulfill these commitments in the context of economic slowdown and unemployment expected to reach 10 percent.



Last year, the trade deficit of France reached a record high of more than EUR70 billion, while public debt exceeded $ 1.7 billion, 5.2 percent of GDP. His first task as President will be to unite all people to overcome the current challenges and imminent.


Holland victory is a turning point for Europe because France is the second largest economy in Europe and Holland said he will oppose the austerity policies of the EU.


Charles Kupchan, an Expert Council on Foreign Relations, said the new president of France wants to review the EU economic agreement to stabilize the currency area. Holland will probably pursue growth policies that could help him find a lot of support from Greece, Spain, Portugal and Italy, but put it at odds with Germany on the austerity measures.


The new French chef favors issuing European bonds to meet debts of member countries of the euro area. It is a solution that Germany has categorically rejected.

It is a good chance of France and Germany, as leaders of the area, will resume negotiations on the Treaty European budget. This is something that German Chancellor Angela Merkel does not want.

Holland victory could significantly affect the withdrawal of France of troops from Afghanistan. He said that France should withdraw its military this year, two years before the date of NATO.

After the election, NATO immediately appealed to France to honor its promise to maintain its troop level there. NATO spokeswoman Oana Lungescu said any change in the withdrawal plan should be discussed and agreed by member countries.
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