Europe swings left: "it's not only important to solve Europe's financial crises, but also to get rid of those who created it"

"Traders and strategists" saw little respite for non-German debt in coming days with investors worried Socialist Francois Hollande - who won the first round of France's presidential poll on Sunday - might loosen his country's commitment to austerity.

On the political crises in the Netherlands, financial institutions also expressed fear, "until we see a new coalition cobbled together in Holland and signs they are going to take action to cut the budget deficit over the medium-term investors are going to be nervous over Dutch bonds," RIA Capital Markets strategist Nick Stamenkovic said.

Citigroup, a tax payer bailed out "too big to fail financial institution" said: "the euro was caught between Holland and Hollande."

"We suspect that more indications that the euro zone countries are softening their commitment to fiscal targets and that  austerity policies could push sovereign debt yields higher still going forward. The headwinds for the single currency could intensify because more funding difficulties for the euro zone core could undermine the efforts to create a credible firewall for Spain and Italy," Citigroup said in a "fear mongerin"g morning note to its clients.

A French left wing parliamentarian hearing the news of Hollande's victory said, "its not a question that we should not solve Europe's financial crises, but in the process we should also get rid of those who created it" 

EU-Digest