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Tuesday 19 June 2012 - 06:49

Leftist victory in France signals start of real Eurozone fighting

Story Code : 172496
Leftist victory in France signals start of real Eurozone fighting
President Hollande has already called for the EU to approve a 120 billion euro “compact for growth and jobs”.

Strong leftist showings in France and Greece have many demanding an end to the right-wing policies that have decimated the wages, pensions and lives of millions of European citizens.

Faced with unyielding resistance on pooling the Eurozone’s debt, Hollande has conceded on the issue of Eurobonds. It ends months of efforts to persuade northern countries that the pan-European project cannot survive without evidence of solidarity.

Eurobonds have been tabled, so enter “Eurobills”, which would raise nearly 1 trillion euros in short-term debt. Northern European nations could avoid risky long-term sovereign debt and EU integration could take a step forward.

Yet while southern Europe pushes for changes, Germany wants more unregulated capitalism, evidenced by their proposal that France privatize its national energy industry. Both sides are so far apart that one of them must have misunderstood the causes of the Great Recession.
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