French & Greek Elections Aftermath
Dear Sive and All
We now have a Socialist President in France after 17 years who claims will not adhere to the austerity measures policies. Germany says that they can discuss anything except departure from agreed austerity policy.The Greek elections on the other hand showed a dramatic drop of both ruling parties and a rise of the so called anti-memorandum parties referring to the memorandum agreement on hard austerity measures adapted by the previous ruling parties for which their leaders have also sent personal letters to Brussels vouching for it. How does these events influence the financial markets? France, despite the rhetoric will not embark in any radical moves. What will happen is that the growing idea within the Eurozone that there must be a shift towards "growth" as opposed to purely austerity will find gradual ground to grow, but nothing drastic. With Greece the situation will hold the suspense for at least end of June, as it is most probable that there will be no agreement to form a government and the country will go back to elections. This will increase the possibility of the anti-austerity parties to win that in this case will indeed completely withdraw from the agreed policies and adapt other solutions. Whether these solutions will be accepted or not the future will tell. The bottom line though is that the weight pulling Euro down will once again be Greece, being the lack of decision making government until elections or the great possibility that after these elections the ati-austerity climate will prevail. By the end of this week it will be clear whether a government can be formed (Very low possibility) or the country will go back to elections.
Let me state here that you are reading personal opinions and as such do not represent advice for financial actions. They are given here as a minimum measure of gratitude to Felix and Sive for having this very useful service and similarly to all of you here at this post.
All the Best to you all!
