Hollande win heralds money U-turn

2012-05-06 23:18

Paris - Socialist Francois Hollande defeated conservative incumbent Nicolas Sarkozy on Sunday to become France's next president, heralding a change in how Europe tackles its debt crisis and how France flexes its military and diplomatic muscle around the world.

Exuberant, diverse crowds filled the Place de la Bastille, the iconic plaza of the French Revolution, to fete Hollande's victory, waving French, European and labour union flags and climbing the column that rises at its centre. Leftists are overjoyed to have one of their own in power for the first time since Socialist Francois Mitterrand was president from 1981 to 1995.

"Austerity can no longer be inevitable!" Hollande declared in his victory speech on Sunday night after a surprising campaign that saw him transform from an unremarkable, mild figure to an increasingly statesmanlike one.

Sarkozy is the latest victim of a wave of voter anger at government spending cuts around Europe that have tossed out governments and leaders over the past couple of years.

In Greece, a parliamentary vote on Sunday is seen as critical to the country's prospects for pulling out of a deep financial crisis felt in world markets. A state election in Germany and local elections in Italy were seen as tests of support for the national government's policies.

Hollande promised help for France's downtrodden after years under the Sarkozy, a man many voters saw as too friendly with the rich and blamed for economic troubles.

Hollande said European partners should be relieved and not frightened by his presidency.

"I am proud to have been capable of giving people hope again," Hollande told huge crowds of supporters in his electoral fiefdom of Tulle in central France. "We will succeed!"

Hollande inherits an economy that's a driver of the European Union but is deep in debt. He wants more government stimulus, and more government spending in general, despite concerns in the markets that France needs to urgently trim its huge debt.

Wasn't convincing

Sarkozy conceded defeat minutes after the polls closed, saying he had called Hollande to wish him "good luck" as the country's new leader.

Sarkozy, widely disliked for budget cuts and his handling of the economy during recent crises, said he did his best to win a second term, despite widespread anger at his handling of the economy.

"I bear responsibility... for the defeat," he said. "I committed myself totally, fully, but I didn't succeed in convincing a majority of French... I didn't succeed in making the values we share win."

With 75% of the vote counted, official results showed Hollande with 51.1% of the vote compared with Sarkozy's 48.9%, the Interior Ministry said. The CSA, TNS-Sofres and Ipsos polling agencies all predicted a Hollande win as well.

Hollande has virtually no foreign policy experience but he will face his first tests right after his inauguration, which must happen no later than May 16.

Among his first trips will be to the United States later this month for summits of Nato - where he will announce he is pulling French troops out of Afghanistan by the end of the year - and the Group of Eight leading world economies.

Hollande's first challenge will be dealing with Germany: He wants to re-negotiate a hard-won European treaty on budget cuts that Germany's Angela Merkel and Sarkozy had championed. He promises to make his first foreign trip to Berlin to work on a relationship that has been at the heart of Europe's postwar unity.

Germany's foreign minister, Guido Westerwelle, congratulated Hollande on Sunday night and said both countries will keep on co-operating closely in driving the European Union's policies and be "a stabilizing factor and a motor for the European Union".

At home, Hollande intends to modify one of Sarkozy's key reforms, over the retirement age, to allow some people to retire at 60 instead of 62. He also plans to increase spending in a range of sectors and wants to ease France off its dependence on nuclear energy. He favours legalising euthanasia and gay marriage.

The new Greece

Sarkozy supporters call those proposals misguided.

"We're going to call France the new Greece," said Laetitia Barone, 19. "Hollande is now very dangerous."

Sarkozy had said he would quit politics if he lost, but was vague about his plans on Sunday night.

"You can count on me to defend these ideas, convictions," he said, "but my place cannot be the same."

His political allies turned their attention to parliamentary elections next month.

People of all ages and different ethnicities celebrated Hollande's victory at the Bastille. Ghylaine Lambrecht, 60, who celebrated the 1981 victory of Mitterrand at the Bastille, was among them.

"I'm so happy. We had to put up with Sarko for 10 years," she said referring to Sarkozy's time as interior and finance minister and five years as president. "In the last few years the rich have been getting richer. Now long live France, an open democratic France."

"It's magic!" said Violaine Chenais, 19. "I think Francois Hollande is not perfect, but it's clear France thinks its time to give the left a chance. This means real hope for France. We're going to celebrate with drink and hopefully some dancing."

  • francois.smith.7 - 2012-05-06 23:46

    Let us see if the left in France can show us all! I am sure Blade is watching this attentively as he surely is not looking after higher education.

  • Smell - 2012-05-07 01:13

    Laughable solution to keep on spending ones way out of a problem caused by overspending. This is the end game for the European social democracies where deficit budgets have been wasted on dubious programs for decades now. There is no increased productivity or increased access to resources for a soft landing. The election of a tax-and-spend socialist has brought France one step closer to Greece. If you still have money invested in Europe, time to shift it to the East, which is just about the only region on Earth left where 1 + 1 = 2. Perhaps democracies are inevitably doomed to fail because of voter greed and ignorance. "We going to celebrate with drink and hopefully some dancing" - in a few years time there will be no dancing...

  • OzzyIn - 2012-05-07 01:15

    Watch the Euro plunge. It is Socialist governments and their spending that got the Euro into this mess. The whole Euro crisis was predicted 20+ years ago. That is why the Thatcherites refused to join, and rightly so. Problem is the pound is being dragged down useless management of Suro countries. Socilism is communism with lipstick and has been proven over decades to not work. Heck, the Labour (socialist) party was in power in the UK and basically caused the problems in Europe.

  • sylvester.kasawala - 2012-05-07 04:45

    Bievenue Monsieur Hollande.

  • Lerato - 2012-05-07 05:54

    The socialists are now controlling France! Good luck to all the \I'm leaving, I'm going to Europe\

  • rivalani.mabasa - 2012-05-07 06:21

    I don't believe the socialist Hollande will bring solution to the French economic chaos. The only solution is to assist(by all Euro states) Greece gets over her debts.

  • muriel.farquharson - 2012-05-07 07:05

    Why can this not hapen to South Africa, we also eed a change.

      DSBennie - 2012-05-07 07:24

      Not from the left we dont

  • DSBennie - 2012-05-07 07:26

    Biggest mistake the French have made in about 17 years

  • ludlowdj - 2012-05-07 13:01

    That so many people buy into the political bullsh*t would be funny if it wasn't our lives they were messing up. And No socialism is not what caused the American Bank collapse JaredVN. the crash was caused by loans to the wealthy not the man on the street. The Banks lent money they never hand plain and simple.

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