EU elections invited further economic uncertainty
In a week’s time Europe’s political landscape almost flipped. The people have spoken that austerity measures put into place by the government were not accepted. French president Nicolas Sarkozy, to become the first president to get second term in 30 years, joined the club of unsuccessful European leaders. So is the Lucas Papademos from Greece.
Greece had been facing turmoil before and after the government accepted EU’s proposal for austerity measures to tame the economy. The healthy growth of the European economy since the formation of the union led the leaders to expect that general consensus will always remain in their favour. This is not.
The election is Greece has invited more uncertainty over economic future. The extremists have come to the powerful position. Attempts are being made for a community government. The communists have already received invitation from the president to form a new government and the second largest Syrzia has said they will tear out the EU bailout package. This was inspired by the loss of Sarkozy to a socialist Hollande, who campaigned on growth against EU bailout package and austerity measures.
Results from local elections in Germany and Italy indicated people do not favour the parties running the government at the centre. Socialist victory in Greece and France will not only affect Markel in determine the future of European economy but also to whole union, with possibility of Greece leaving the zone. There are threats of Euro currency to be termed a failed currency.
Ousters of important players of the European politics might also be the result of young voters. The whole euro zone is now facing strong youth unemployment rate. The governments have given less importance to improving youth employment rate, one of the major factors to bring economic stability. Equally irritated were the older citizens whose benefits were cut down in Greece for saving.
The economy, despite austerity in places, had not shown any signs of recovery. With unexpected results from the elections, the economic future has further become volatile in Europe. Once an example of strong economic union, EU now faces tough days ahead to keep on the league. Speculation over disintegration of economic union’s sustainability has begun. Some accuse this as the result of faster expansion of the union, without first properly understanding the economic structure, sustainability and situation in new nations joining the union.