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| Francois Hollande (Image: Telegraph.co.uk) |
It has been another interesting month in Europe. On one hand, there is a sense of optimism and restorations of pride while plenty of uncertainties and frustration on the other hand. Nothing is simple in life and Europe is finding their suitable path towards prosperity the harder way. This might sound obvious now but will the next year or so show that the Euro currency defy all odds and survive?
If the currency does survive until its bitter end, its premature death may have been delayed as France has a new President. Nicolas Sarkozy has lost his place at the top to a Socialist, Francois Hollande. The 57-year-old's party have not been in power since 1988. It has been so long, the last time they led a parliament, the Berlin Wall still exsisted. There is no wall to literally tear down but metaphorically, there is one which needs to go away.
Hollande has the biggest task in modern French politics. People on the 6th May chose him to be the outright winner over Sarkozy to sort out the European Union. Sarkozy did all he could to keep the Euro going but he caused problems internationally with the lack of efficient handling of the currency, nationally in France after making bizarre decisions such as banning the burqa, and his private life. Perhaps his wife Carla Bruni's celebrity status and their new addition last October was too much of a distraction? Regardless, Hollande won and the people in France I believe are happy. Well, most of them are.
Hollande has a big task on the Euro, not just because he gained the trust of so many French citizens as they wanted someone different to be the driving force to save the currency, but also he needs to gain positive international relationships, particularly in Germany. Its Chancellor, Angela Merkel and Nicolas Sarkozy were professional friends and everyone knew about it. Early indications shows that Ms Merkel and Francios Hollande have had some disagreements with the newly elected President acting against austerity - something which the German Chancellor champions. For those like me who are/were unfamiliar with the word "austerity", it basically means cutting the deficit. David Cameron, like Merkel also loves austerity. With these cuts in the United Kingdom announced in the country's emergency budget in the summer of 2010, "austerity" was named Word of the Year. Hollande is approaching the economy very much like a "proper" left-wing politician. Although people may argue spending more may lead to more lending, meaning more gloom - however, to me it is all down to how entrepreneurial each Chancellor and leader is. In the UK, the cuts are not working. There are more unemployed than ever before and more are on the streets showing their frustrations that they are to be taxed more in addition to a reduction to their pensions. Money needs to go to departments which needs it the most. We need more people like Lord Sugar and Sir Richard Branson in politics as they know the word "profit" very well, regardless of the extent of the spending.
Clearly Angela Merkel is arguing her case well but austerity is the wrong way forward. It is one step forward, but two steps back. Look at Greece for example. The parties against austerity are trying to get their voice across and the residents in the country do not want austerity either. But those in support of it are getting their way which is causing chaos in Greece, despite their ratings falling dramatically. However, people in Greece no longer know who to vote for and political parties clash and fail to form coalition governments. Germany and France have been able to give them substantial amounts of money to help them but only for Greece to pay off their loans, giving nothing to their public - hence riots in Athens over the past year.
I could say that austerity is bad for countries but for those like Greece and Spain, which have very little money, it is difficult for governments to help their citizens. People need to be patient. Politician's reputations are on the line and I think they are perfectly aware of the pressures on them. Things will get worse before they get better. How long it will take before things can improve, one can wonder. Should Greece leave the European Union and therefore ditch the Euro? In my opinion, that should be their last option. Yes, Greece dropping the currency would have one less burden on Germany and France but the country would be left in the dark, isolated and alone. Norway and Switzerland aren't members of the European Union for the reason that they no longer require help by Europe. Greece shall not be in this situation. Neither should Spain, nor Britain. UK can save billions by leaving Afghanistan tomorrow but I am sure they will prosper because of the money they'd receive when the Olympic Games occurs in July. However, one must remind everyone Athens pulled off a great Games in 2004 and look at the country now. UK need to avoid this and more entrepreneurial spark is needed. George Osborne is not the answer and neither is his opposition shadow Chancellor, Ed Balls. Can I hear Karren Brady's name? Just a suggestion but decisions need to be made fast.
The Eurovision song contest is just two weeks away and I do not think politics this year would be much of an issue with the voting this year. Unless one of the Scandinavian countries or other places not affected by the Euro crisis wins by a landslide - then we could only assume politics picked the winner. However, the election victory by Francois Hollande has sent a different tune ringing in the EU's ears. Brussels must be put on guard as the summer 2012 approaches.
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