Financial analysts' reaction to French election

PARIS (Reuters) - Right-winger Nicolas Sarkozy was elected president of France in a run-off vote on Sunday against Socialist Segolene Royal, according to reliable forecasts published after polls closed.

Below are comments from economists and financial analysts on the election result.

MICHEL MARTINEZ, SG ASSET MANAGEMENT.

"The victory of Sarkozy was expected, so the CAC-40 will not react anyway to this victory."

"The market will also wait for the National Assembly (parliamentary) elections in June and also the nomination of the government."

"Will the government adopt a reformist (with more deregulation) or an interventionist (in the industrial sector) line?".

"What will be the first budgetary choice? President Sarkozy has promised many tax cuts and some choice will have to be made."

GUILLAUME MENUET, ECONOMIST, MERRILL LYNCH, LONDON

"Sarkozy will probably try to implement his reform agenda as soon as he has a clear majority in parliament. Things will also depend on what sort of social reaction we see in the next few weeks."