French Bid Sarkozy Adieu, Austerity Is Dead: What Does This Mean For President Obama?
Nicolas Sarkozy has lost the presidency to Francois Hollande. Francois Hollande is the first French Socialist president in nearly two decades and the election held today confirms austerity in Europe is dead.
France and Germany have been major backers pushing for the implementation of harsh austerity programs throughout Europe and this may have backfired for Sarkozy who was ousted today. The political economy in the Eurozone may be levered more towards growth and decreased spending now that Merkel’s new counterpart is a socialist.
What Does This Mean For President Obama?
Sarkozy’s ousting could have a significant impact on the push for austerity to end in Europe but the effect of the change in power could also effect President Obama’s reelection chances. As Europe fades further into chaos and economic disarray, President Obama will need to make tough decisions that may make his administration uncomfortable. It’s time to focus on growth.
The French election result is indicative of constituents changing their minds quickly when they believe a president isn’t working hard enough to alleviate problems related to joblessness and the economy. This makes it tougher not only for President Obama, but for all incumbents who are managing down trending local economies.
Focusing on growth and reducing spending along with entitlements are tough decisions that have been avoided for the past few years by several nations suffering from poor economic performance. France has taken the lead in pushing for growth and other nations may follow.