Wednesday, May 16, 2012
Austerity Rejected in Recent European Election
Greece and France have recently had elections where, in France, the Socialist party won and this means that the people are standing up against austerity measures. In Greece the May 6th election didn't leave a party with a majority and another election will be held later in the year but the party with the most votes was one that was against the austerity measures that were put in place in order to get Greece out of their financial situation. From these elections it is clear that austerity measures are not going to be put in place for the time being. Hollande, who is the Socialist elected in Frances most recent election, prides himself on the fact that he is a normal person and can make the right decisions as he is ordinary and understands what the people want. Unfortunately without these measures taking place debt will not be repaid. France may be better of on the Debt front then Greece but they are not Debt free. Without the austerity measures I see no way that the countries will be able to move on from this situation. In my opinion Austerity measures are a necessary evil and in the end they will be implemented or Greece will default.
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You and I both fear for the future of these two countries, especially Greece, due to their new government who will not enforce austerity measures. Default may be in the near future for Greece, unfortunately, which will also kick Greece out of the Euro.
ReplyDeleteI agree with both you and Meaghan... France and Greece's economies aren't looking so hot at the moment, and while some argue that austerity measures have crippled the economy, I see no other option than to forge ahead with them so the debt can be paid back. If Greece defaults, it will be absolutely catastrophic, not only for Greece, but for the world. The Greek people may be fed up with austerity and vote against it, but I don't think the possibility of a ruined country was considered at the polls.
ReplyDeleteIt all comes down to strategic politics. Austerity measures are necessary but widely unpopular, because with them comes the closing of many social government programs. Hollande has taken advantage of this and advertised that he will solve France's debt problems without austerity. This is a ploy where citizens who don't know much about economics will be sucked into believing that there is an "easy fix" to the Eurozone's debt problems. Of course if they believe this they will vote for a government that won't end social programs. The Eurozone's economy can only be saved if people start realizing that austerity measures are absolutely necessary to reducing their country's debt.
ReplyDeleteI think this is a very dangerous move. It is more popular with the citizens but if it doesn't work then France will be in a deeper hole. But looking at other countries that are trying austerity measures things are going so well. Maybe this is the solution.
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