We no longer check to see whether Telegraph. To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome. By Henry Samuel , Bruno Waterfield in Paris. Weekend election results in Greece sent tremors throughout Europe as voters punished the parties responsible for highly unpopular austerity measures instituted to prevent the country from defaulting on its massive debts and exiting the euro currency bloc.
Japan's Nikkei index plunged 2. Among European markets, Germany's DAX dropped 1. No political party won enough votes to form a government, raising the possibility of new elections within months and protracted uncertainty for global markets. Hollande chooses first cabinet as Martine Aubry is snubbed. Sarkozy booted out of office having exhausted France. Hollande's win isolates Cameron.
Angry Greeks send message by punishing austerity parties. Meanwhile, in France, President Nicolas Sarkozy lost to Socialist candidate Francois Hollande , who had criticised the country's austerity program and wants to boost government spending. Francis Lun, managing director of Lyncean Holdings in Hong Kong, said markets were overreacting to fears Hollande would renege on a pledge by Sarkozy to put the brakes on government overspending.
Accepting his mandate as French president, Mr Hollande threw down the gauntlet to Angela Merkel, the German chancellor, who has made austerity policies a condition of euro membership.
Ed Miliband, the leader of the Labour Party, also hailed the French Socialist victory as a development that would weaken the Conservative-led coalition.
In Greece, it appeared last night that centrist New Democracy and Socialists were denied a combined majority leaving the country ungovernable as a minority government tries and pass a new raft of austerity measures.
Neo-Nazi Golden Dawn MPs will now enter the Greek parliament for the first time since the end of the military dictatorship in The combination of both results was expected to upset markets and increase pressure on the euro as investors today get their first chance to react to the prospect of uncertainty.
Greece | wunesajoc.web.fc2.com
The early signs were ominous as the Asian markets registered an immediate drop in the euro when they opened this morning. In a bad night for Mrs Merkel, her ruling Christian Democrat party suffered a major setback in regional elections, scraping a one-point lead over resurgent Social Democrats allied to Mr Hollande.
Get ready for a new Greek drama - Dec. 29,
Mr Sarkozy became the 11th European leader to fall foul of the economic crisis since in a catastrophic result for the French Right.
In a move that will heighten warfare within his party, he said: On Sunday night Mr Hollande had won There are concerns that Mr Hollande will be unable to respect fiscal discipline targets while enacting a tax — and-spend programme that would see him create 60, more state education posts, partly revoke a pension reform and slap a 75 per cent tax on millionaire owners.
A senior Conservative source told The Daily Telegraph that fears France was about to reverse course would cause turmoil and uncertainty. We have to do austerity, and so does France.
Homelessness - Greek elections: Faces of austerity - CNNMoney
David Cameron, the Prime Minister who had given his backing to Mr Sarkozy, called Mr Hollande to congratulate him on his victory. Martin Chilton selects 30 great one-liners from the comedian and film star Woody Allen.
Stunning aerial shots of London's football stadia by photographer Jason Hawkes. Accessibility links Skip to article Skip to navigation.
Wednesday 21 June USA Asia China Europe Middle East Australasia Africa South America Central Asia KCL Big Question Expat Honduras.
Stock markets fall as Greek and French elections renew fears that Europe cannot solve debt crisis World stock markets hit as France votes for first Socialist president in 20 years and Greece chooses a parliament with a majority of MPs from anti-bailout parties.
Woody Allen's 30 best one-liners.
Comedy Martin Chilton selects 30 great one-liners from the comedian and film star Woody Allen. The best British political insults. Culture A hilarious history of political insults and putdowns, from Churchill to Corbyn. Culture stars who died in Culture News We celebrate and remember the culture stars who have passed away in Books Great quotes from White House incumbents: Comedy One hundred whip-smart wisecracks. History's greatest conspiracy theories.
Grand stand views of London.
Russia's abandoned space shuttles. The crumbling remains of the Soviet Union's space programme. Ambitious Chinese inventors take on crazy do-it-yourself projects. Sinkholes around the world. Sinkholes, craters and collapsed roads around the world. HOME News UK News Politics Long Reads Wikileaks Jobs.
World News Europe USA China Royal Family News Celebrity news Dating. Finance Education Defence Weird News Editor's Choice Financial Services. Pictures Video Matt Alex Comment Blogs Crossword. Contact us Privacy and Cookies Advertising Fantasy Football Tickets Announcements Reader Prints. Follow Us Apps Epaper Expat Promotions Subscriber Syndication.