A political backlash against fiscal austerity left mainstream French and Dutch politicians struggling yesterday to shore up support, as a key economic indicator highlighted the eurozone’s slide into deeper recession.
François Hollande’s victory in the first round of French presidential elections – which raised fears of more wrangling over the eurozone’s economic strategy – and the fall of the Dutch government after a clash over fiscal policy hit the markets.
The uncertainty sent European stock markets tumbling and put pressure on French and Dutch sovereign debt, while investors sought refuge in Germany’s government bonds.
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