The feeling’s mutual. Mr Hollande and Mrs Merkel are clashing over Eurobonds, and more.
Let’s hope that the 3rd and 4th rounds of elections in France (actually for the Representants, yet direclty impacting the options and possibly turning the results of the Presidential election into almost nothing) will support the paths towards a sustainable growth policy in France and in Europe, that is one made of structural reforms and not of more public debt.
As he still fighting for as large a majority as possible in the Parliament, Hollande is merely advertising for options that have proved over the 70s and the 80s that they do not lead to growth. His discourse is full of demagogy. The question with the French people? Are they able to understand that Hollande is only bullshitting everybody? We ‘ll know in 1month from now.
The result of the French legislative elections will directly impact the economic debate in Europe. And there is for sure a huge possibility that either the socialist have the possibility of a majority (either alone or in coalition), or that no clear majority emerges from the French Parliament… In that latter case, we have to wait al least for 1year before new elections can occur.
BTW: “Eurobonds” are a buzzword that covers almost anything. Per se, Eurobonds are neither good nor bad. Yet anything does NOT go. Summing up the issue with Eurobonds remains simple: most people find here a way to have the sound economies and debt-free budgets pay for the countries that are almost bankrupt. It echoes Frederic Bastiat’s words about the State, this fantasy giving the impression that anyone can live at the expense of all others. In other words, Bastiat’s “State” is enlarged up to cover the whole EU, and Eurobonds allow for spending without constraint, and for living on a money that is not available. It’s then only a matter of time before everybody goes bankrupt… together.