France, Greece Elections: Threat to World Economy?
The make up of the new Greek parliament (above), and the change in the French Presidency, is causing concern among some economists and investors. (Photo: Government of Greece)
Stock markets in Europe fell initially today on the election news from Greece and France. Economists disagree, but many fear the populist backlash against austerity could put new pressure on the euro, and thus, the world economy. Anchor Marco Werman discusses the issue with Jacob Kirkegaard, research fellow at the Peterson Institute of International Economcis in Washington.
Stock markets in Europe fell initially on Monday on the election news from Greece and France.
But Wall Street was flat.
Like the markets, economists disagree over what it means.
Some fear the populist backlash against austerity – seen in the elections – could put new pressure on the euro, and thus, the world economy.
“It’s hard to underestimate the challenge that’s facing Europe,” Jacob Kirkegaard tells anchor Marco Werman. “(It’s) much more than fiscal. It really has to do with the design or redesign of the entire euro area.”
Kirkegaard, a research fellow at the Peterson Institute of International Economics in Washington, added “But by and large I think we shouldn’t over dramatize the effects of these elections.”