The presidential elections in France, the legislative elections in Greece, and the regional elections in Germany together mark a turning point for the EU. The results make clear that, despite their differences, European voters all share a common view that current leaders are not delivering. In France and Greece, voters want an end to unending austerity that doesn’t work.

But whereas France’s second round of the Presidential elections brought into power a Socialist government that can govern, and govern to the center, Greece’s election put into place a legislature even more divided than the first. The presence of extremist parties on the right and the left also cast further doubts on the country’s governability. The German elections, with the rise of the Pirates party and the defeat of the Liberal Democrats, Merkel’s coalition partner, suggest that even voters in this country are fed up with policies that don’t work.

Let us hope that the new French President Hollande will be able to work sufficiently well with the continuing German Chancellor Merkel to produce new policies that will convince the markets that the Eurozone will finally do enough to promote growth, with all the backstops necessary, whatever happens with Greece.

Link:

Voter Anger Sweeps France (Wall Street Journal, May 7, 2012)

Here’s a comment I co-authored with Maxime Lefebvre for Le Monde online (in French).

There’s a joke told about Gorbachev who, when asked to say one word about the state of the Soviet economy responded: GOOD. When asked for two words: NOT GOOD. The same could be said about the agreement reached Friday. The agreement is good in that the pact on fiscal union gives the ECB what it needs to become a lender of last resort if and when it becomes necessary. Good in that progress was made with regard to increasing the firepower of the loan guarantee mechanisms, the EFSF and ESM. Good in that it did not give Cameron the concessions for the CITY in exchange for his buying in. However, the agreement is not good in that it did not even consider euro-bonds or any other form of pooling member-state debt. It is not good with regard to the substance of the fiscal union, which is all about austerity, with nothing to promote growth. And there is nothing on political union. We remain with technocratic oversight of member-state budgets, and intergovernmental bargains. With no thought to building in democratic legitimacy, say, through European Parliamentary involvement. If the fiscal union fails to promote growth, can EU leaders really expect fellow leaders to toe the line when national publics are out protesting in the street, asking why their leaders are cutting budgets more, rather than trying to relaunch the economy?

Link:

Tensions Rise at EU Summit (Wall Street Journal 12/9/11)