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Dublin: 15 °C Wednesday 19 June, 2013

Euro dips following French and Greek election results

Investors are concerned political upheaval could derail government austerity measures and worsen the bloc’s debt problems.

Image: Julien Behal/PA Wire/Press Association Images

THE EURO HAS fallen against the dollar and pound following the results of French and Greek elections, which saw pro-bailout parties shunned.

In the wake of the results, the euro fell to $1.295 and dropped to three-year low against the pound, the BBC reports.

French Socialist Francois Hollande, who promised during the presidential election campaign to boost spending, defeated President Nicolas Sarkozy yesterday – while, in Greece, the pro-austerity coalition parties suffered a sharp decline in support, which might undermine efforts to keep Greece in the euro currency bloc.

Investors are concerned that political upheaval in Europe could derail government austerity measures and worsen the bloc’s debt problems.

Additional reporting by the AP

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Comments (28 Comments)

  • I think in Ireland’s case we should look at Greece’s pain. We can vote yes and get a second bailout with terrible conditions attached and still multiple billions meaning a decade or 2 to be back in the markets or we vote No, force a debt write down as we will have no money,then we will be more attractive to markets as we will not have a debt noose around our necks or our children’s children’s. We will have a leaner tax and services system also. I’m voting No because we owe it to the next generation to get rid of this unfair debt and this is the first step.

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    • If voting no makes Getting rid of the self serving liars in government easier, then I’m voting no. As far as getting a better deal from Europe goes! I think we need someone with real principles to negotiate for us! As of yet I don’t see anyone currently in politics cable of leading us out of this mess! Hopefully the reality of this situation will force he or she to come forward soon!

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    • we’re a lot different than Greece, just in the sense that’s they’re a little more complicit in their problems than we are. I see what your saying and largely agree with what your saying its just I don’t see it as that easy we won’t get a debt right down that large by not playin ball with Europe, we would have to bankrupt ourselves to do it and leave the euro in order to devalue our currency. this would put the stability of all Irish exports and domestic production at risk. the markets wouldn’t lend to us at less than 10% which is madness, at least another bail out would be cheap money…. I reckon we need to play harder ball with Europe, make the French Germans and brits take the pain for their banks wreckless lending. they were equally as complicit as Anglo in all this.

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    • Not all our debt is ‘unfair’. Sure, the bank debt is a pain in the ass but remember we have over €50bn of debt which is budgetary deficit caused by borrowing to pay social welfare.

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    • The BCG report from December (reported here) on the likely consequences for nations departing the Euro. In a nutshell, short term (Iceland-like) pain followed by growth for departing nations. Longer term stagnation for remaining nations.
      http://businessetc.thejournal.ie/the-single-image-that-explains-what-happens-if-we-leave-the-euro-308879-Dec2011/

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    • Well said.!

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    • It’s great to see pro austerity parties suffering a steep decline in support. We have to make a stand and say STOP for the sake if our kids and grand kids. This bullshit that there won’t be money to pay teachers and nurses is a scare tactic used by this lying toothless government. Vote NO to force a deal on debt write off. Remember the Brits defaulted in the 70′s and them seem to be doing OK.

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    • bring back the punt

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    • To all the commenters above… I agree with everything…

      Love this, finally it seems to be coming together now…. It’s giving me hope to keep posting here…. I been saying these things for many many months now….

      But slowly more and more are realizing what’s going on now..

      But more importantly we need to get our nearest and dearest to buy into voting No…. We need a resounding No in this austerity treaty…. Worst case we do an iceland in it…. There after Ireland would be a lean and mean machine in a couple of years time…. With most if not all of our current headaches solved…

      The rich and wealthy will suffer most if we vote No…. Stuff them and there greed…. I ain’t seen one banker or one millionaire to suggest voting no…. I also ain’t seen anyone who commited white collar crime put behind bars yet….

      Vote No… But that won’t be enough… collectively we need to inform others who don’t know or care too much about the right thing to do now at this point in time now. Vote no

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    • Welfare doesn’t really count much towards the deficit as it’s an economic driver. It keeps local business alive. If anything it might be a net positive.

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  • You can’t starve your way out of a famine,

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  • And all it would have taken is for these “investors” to walk the streets of the countries being put under austerity for 5 minutes to figure that out. Shows how connected they are to the world outside of making monopoly money out of monopoly money.

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  • Can we have a referendum on the markets and vote no to them too? Of course, I’m only joking, but countries are seemingly being held to ransom every time time for instance, *people democratically vote for a new government/president/whatever*. I’m a bit sick of it, if I’m honest. As the man says above, they can fcuk right off!!

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  • Markets can fcuk right off!

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    • Thats the whole point Ryan, you *can’t* tell the markets to ‘fcuk right off’.

      The markets control everything and the sooner the Irish people realise that’s why our Government are taking the approach they are, the better.

      Sinn Fein and the United Lunatics Alliance seem to think we can live our lives in a little bubble and ignore everything thats happening around us.

      Excuse me, I need to go, I can smell the coffee burning !

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    • That’s not coffee you smell burning…..!

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    • Thats the whole point Ryan, you *can’t* tell the markets to fcuk off !!
      The markets control everything, and that is why our Government is taking the approach that it is.

      This basic fact of economics seems to be lost on the Shinners and the United Lunatics Alliance

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  • More austerity in this country will turn it into to a wasteland- people are suffering now a lot people can’t make ends meet – and have no more money to give that’s reality – forcing people to give up everything will rip the country apart – and the big elephant in the room for this country is when the Ecb raise the mortgage interest rate when other countries come out of recession like Germany – then what
    We are done as a country- sad outlook I know

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  • John 07/05/12 #

    If we really want to leave the Euro, what would happen? The Irish Punt would devalue so fast, that overnight the cost of living would explode. Remember, oil is king (which we import against currency exchanges) and that means everything from running your car, heating your home and providing goods and services will be dramatically more expensive (that means your pay packet gets you less and less).

    With Ireland already bankrupt and shut out of the markets, where do we get all this ‘magic’ money to run the country if we leave the Euro? How do you pay doctors, bus drivers, air traffic controllers and so on. What happens to social benefits, who pays for it then?

    I’m not happy what has happened over recent years, but we are not Greece. The EU is crucial to both our funding needs and economic growth for the foreseeable future.

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    • @John

      I agree with you somewhat. I do understand that we need Europe and indeed the rest of the world. But we don’t need political, monetary and fiscal union. The like of such is disastrous when implemented. We can simply trade with Europe (free trade preferably), we don’t need to be tied together by the waist monetarily…

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    • You get the debt write down and stay in euro just like Greece but the burden which is intolerable and getting even more unmanageable will be eased considerably, the fiscal compact is fine when we are all clear of trouble but at the moment all it is is a mechanism to guarantee Franco/German money back by punishing us further if we don’t make the cuts which will endanger our citizens lives even further. You have a growth pact, then when you are out of trouble you have a fiscal pact to make sure we don’t slip up again..

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  • debbie 07/05/12 #

    Vote yes and we get walked on vote no and we get trampled on . . .

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  • The falling Euro is good for tourism, at least. It attracts investment as well. Cheap real estate and money. What’s not to like if you’re a foreign investor?

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  • Well that can only be good for our competitiveness.

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