French socialists almost certain to win in National Assembly vote

The biggest question that the ascension of socialists to total power in France that will best asked is, will the fiscal crackup occur over a period of years, or will the confluence of events elsewhere in Europe bring down the French economy more quickly? AP: The elections come after a hasty new bailout for Spanish banks, and the same day as crucial voting in Greece. The Greek elections may determine whether the country stays in the euro, with repercussions for all the other 16 countries that use the joint currency. After budget-tightening in France under Sarkozy that leftists warned would send France back into recession, Hollande is pushing for government-sponsored stimulus to encourage growth - and has met opposition from German Chancellor Angela Merkel as the two try to stem Europe's crisis. Hollande's Socialist government has pledged to reduce the deficit, but markets are worried about higher spending when France's debts are so high. Hollande, a moderate and mainstream...(Read Full Post)