Political changes in the eurozone
All-Star panel weighs in
- Duration 4:24
- Date May 7, 2012
All-Star panel weighs in
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Please see -- look in Paris France while long beating incumbent president Nicholas Sarkozy.
Become the first French socialist leader in seventeen years who ran on anti austerity.
And promised to tax the rich at seventh and -- -- lower the retirement age.
-- -- -- Back -- our panel -- Does this mean for Europe what does it mean for the US trials I think the general interpretation is correct this is a revolt.
The people in Europe put on have a lot of say.
When the EU he's doing business.
Against austerity which has been decreed by the Germans and the French leadership.
As a response to the crisis in Greece and elsewhere.
The problem is that is it did bring down the government's austerity -- -- the governments in Portugal.
In Italy and Ireland in Spain and in Greece.
But you can go to change the leadership on the austerity but you can't vote against mathematics.
-- god is socialists he says he wants to.
The austerity he -- growth.
That's in a way of saying tax and spend.
He wants to do to reduce the number of of cuts and spending he wants to tax the rich for those that make over a million euros a year.
At a rate of 75%.
I guarantee you that the treasury in Paris will get less net revenue.
As the rich believe that the rich are able to move a -- in the -- As happened in other countries the problem is in the end if he does all that he says he's gonna do.
Increase the taxes and not to do it cuts the markets will squeeze the French village squeezed the -- Greeks and the Spaniards in the Portuguese.
You can't -- to have a new government which can have a new economy.
Unless you do you have cuts.
And you balance your budgets which he doesn't want to do.
Chuck I -- doesn't translate here.
Well we haven't had austerity yet quite the way some countries have had in Europe which translates.
Here is that we -- -- you have the same problem not as acute and -- -- media but we have to balance our budget we have to.
-- -- welfare state in more modern.
And in that regard I don't know what austerity mr.
along this complaining about in France I mean they -- they raise the retirement age from sixty to 62 which is still.
Five years less than it is in Germany.
That one fact alone suggests some of the reasons why there may be able.
Dealing with -- Germany if mr.
long walks and with the position that I'd like to reduce my public's retirement age to substantially lower than yours seems there is -- Learn about Europe overall that the economy there is very fragile and that it is potentially.
Ricochet is over here to the US and directly to the markets here.
It is and it could and I think that people are right to have that concern.
But I find it amusing in fiscal affairs he -- newspapers today look at the aftermath of what happens France -- -- collections.
The municipal elections local elections in Britain and now everybody wants to draw lessons from from Europe so.
-- you have a series of elections and commentators here the conventional wisdom here as well this is this is really meaningful for the United States.
I'm -- hand we've had decades of economic policy.
For which we don't wanna draw any lessons apparently at least many of our leaders don't -- -- now policy I would say that the lesson from Europe.
Decades and involves the inexorable growth of the state rather than.
Two years of posterity or in some cases take us there -- I I think that's what's remarkable of the austerity and friends has not actually.
Happen there's been some change in the weekly work hours no real cuts.
And asked chuck indicates when they raise the retirement -- a big deal.
Good friends from sixty to 62 there were riots in the streets students.
Who have no job and who would not be affected for forty years.
Two extra years of working arriving in smashing.
A windows industry took -- Paris over this it tells you.
House -- educated and coddled the the population is -- -- imposing our stereo and a population used to cradle to grave.
Government is going to be extremely hard and that's why the socialists won -- in the and you can't rule the repeal economics.
That is if -- the.