Europe had a momentous election yesterday. But it wasnt in Greece. It was in France.
Greeks narrowly chose the "pro-bailout" party, the headlines trumpet. But thats no surprise. The Greek public has consistently said that it wants to stay in the euro. But nobody in power, whether in Greece or in Brussels or in Berlin, has shown exactly how Greece can do so without suffering under crushing deflation and depression, which people dont like so far.
The election didnt change that impossible equation — nor did it change the fact that Greece is small. If the euro cant survive a Greek pull-out at this point, it cant survive much.
The real news was in France, where new president François Hollande booked a big victory, gaining control of Parliament by a comfortable margin.
The voters choice shows that the French people didnt elect Hollande because they were understandably tired of Nicolas Sarkozy. The French people elected Hollande in large part because they dont want austerity. Bowing to this reality, one of Hollandes first acts was to rollback modestly an equally modest pension cut.
France is not small — and how France behaves now under a socialist government matters more to the euro than whatever happens or doesnt happen in Greece.
Original Source: http://www.nationalreview.com/corner/303165/freece-nicole-gelinas#