Hollande may turn out to be everything he naysayers said he would be. He could drive a wedge between the periphery and the core that sparks the eventual breakup of the union.
But I doubt it.
No one wants to govern a wasteland and only the most stubborn dictators don’t listen to the market. There are certainly risks he could undermine confidence in France but it’s folly to prejudge a politician based on campaign rhetoric.
Greece is certainly a mess but the public still widely supports staying in the euro.
The positive news is that Spain appears to be moving forward with a ‘bad bank’.
