Sarkozy, Hollande battle for French presidency

Posted On: April 23, 2012
The pitched battle to lead the nation hosting the euro zone's second largest economy has been set.

Nikolas Sarkozy, incumbent president of France, is attempting to stave off the challenge of Socialist Francois Hollande, Bloomberg reports. With the second round set for early next month, two key topics at hand are the nation facing its highest immigration in 12 years and the voracious appetite of the sovereign debt crisis.

The surging campaign of Hollande is weighing on Sarkozy’s odds, and one chief economist said Sarkozy might trip by asking too much of the European Central Bank.

"The first round may offer a glimmer of hope for Sarkozy," chief economist Holger Schmieding with Berenberg Bank in London told Bloomberg. "But it also entails a risk that he could pander to right-wing sentiment on European issues in the next two weeks. Stronger calls for a 'growth mandate for the ECB' and the like may not go down well in Berlin and Frankfurt."

Reuters reports the ECB might relax monetary policy later this year amid a grayer economic outlook and possibilities that the sovereign debt crisis is deepening.

Category: Industry News

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