In France, and in Greece, the anti-austerity backlash has achieved a double victory this weekend, bringing closer the point at which the euro breaks asunder. Continued German support for the single currency relies on acceptance of the austerity imposed by the fiscal compact. Both France and Greece have now resoundingly rejected the old political consensus, making the future of the single currency more uncertain than ever. But is Berlin going to accept this volte face? This seems at best questionable. It is all very well to vote against austerity, but where is the money to come from for fiscal expansionism, even in France, let alone Greece, Spain and Italy?

(Dr. Benny Peiser)