PARIS (Reuters) - The following are reactions to the victory of Socialist candidate Francois Hollande in France’s presidential election on Sunday.
DAVID THEBAULT, HEAD OF QUANTITATIVE SALES TRADING, AT GLOBAL EQUITIES, PARIS
”It may take a week or so for the markets to digest the results of the French vote, but in the medium term, it’s fuelling hopes of a new dynamic for Europe focusing on growth measures, not just austerity measures.
The vote in France, as well as in Greece, is a backlash against German’s posture in this debt crisis. People are saying: ‘enough austerity’. This might be a turning point for the region that could change Germany’s fiscal orthodoxy, bring a consensus on the need for Eurobonds and transform the European Central Bank into a ‘European Fed’ focusing on economic growth, not just inflation.”
JEAN-EMMANUEL VERNAY, DEPUTY MANAGING DIRECTOR AT INVEST SECURITIES FRANCE
”Hollande’s score isn’t as high as polls were predicting. The key will be to see who gets a majority in the upcoming parliamentary elections. Hopefully, the right or the left will get an absolute majority, with no need for concessions to the parties from the extreme left or right. The focus will also be on the European front, to see how the new French government will deal with Angela Merkel and more importantly, Mario Draghi.
”I think that the market reaction will be quite subdued. The news from Greece may, in the short term, be more important than from Paris.
”Everyone in Hollande’s entourage is very keen in calming down any concerns with Germany and this is very important because this is what is at stake in the next few days. I‘m fairly confident that France and Germany can maintain a very strong common approach to European affairs.
“The issues for France are more in the medium term. There was nothing in Hollande’s platform about structural reforms, competitiveness and these are issues that will have to be addressed in the next two or three years.”
“The immediate concern is about Germany and how to deal with the euro crisis, especially if Greece becomes a problem again. Hollande has moved sufficiently in the last few weeks on his ideas about renegotiating the fiscal pact to make it perfectly workable.”
Reporting by Blaise Robinson and Leigh Thomas; editing by Daniel Flynn