What A Hollande Victory Means For The Euro

By Macro and Cheese:As suggested by pre-election polling, Francois Hollande has won the French presidency. France will usher in a socialist president, the first since Francois Mitterrand, who surrendered the office 17 years ago. This will put France's new president at odds with Germany, the banker to the European economy, leaving Angela Merkel in the uncomfortable position of having to work with the opponent of the man she openly endorsed in the run-up to the election.Before considering the election's impact on the markets, here is a review of the major planks of Hollande's platform:

• Hire 60,000 new teachers
• Balance budget by 2017
• Tax income above EUR 1 million at 75%
• Reduce usage of nuclear power
• Reduce consumer utility bills
• Lower retirement to 60 for those who have worked 41 years
• Reduce payroll tax
• Renegotiate European treaty
• Separate commercial and investment banking
• Encourage ECB to lend money directly to governments

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