Fortune’s Cyrus Sanati writes: France's presidential election has Wall Street
and the global markets worried – and for good reason. The election of Socialist
party leader Francois Hollande to France's top job this coming Sunday would
introduce an air of instability into the global economy at a time when it
desperately needs a steady hand.
But beyond the instability, there are concrete reasons why
the markets should be concerned with a new Socialist-led government in the
Elysee Palace. If elected, Hollande will inevitably push for tougher financial
regulation in France and on the continent, and unlike his predecessor, will
most likely see them through. This will invariably impact and eventually
restrict the way Wall Street and the City of London does business, both on the
continent and, quite possibly, at home. And if he pushes hard enough, he could
disturb the carefully crafted agreement with the European Central Bank that is
keeping the euro on life support, setting off a chain of events that could have
dire worldwide economic consequences.
….In the eurozone, the changes in leadership have been
viewed as mostly positive by the markets -- they have brought with them the
tough changes needed to help stabilize the seemingly endless European sovereign
debt crisis. A change in leadership in France should therefore be viewed the
same way, right? No. Hollande has said that he would shake things up once he
gets in power and would not toe the line with Germany or anyone else. That
means anything is on the table, including agreements Sarkozy had carefully
worked out with his European counterparts in taming the sovereign debt crisis…
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