French unrest with conservative leadership may be a reason for selling Euros
Karen Zuba
May 7, 2007

France elected conservative Sarkozy as president by a solid margin. His 53%-47% victory over Royal paves the way for action on campaign proposals to trim state bureaucracy, curb immigration and reduce business regulation. But that also raises the question of massive unrest in France in the next four years. French citizens especially the common people may not tolerate a US or UK style rightwing Government that does all it can for big corporate businesses. According to some analysts and international think tanks, France may be on the brink of a civil war.

The good side of this election is that French unemployment rate will fall if the conservatives are able to help the businesses. But that will take time. The biggest challenge will come from the labor unions and socialist labor groups. French unemployment rate is high. The corporations may now get a freedom to lay off hundreds of thousands of workers. It will create riots in French main streets.

France will curb on legal and illegal immigration. That was the main reason for right wing victory. According many international think tanks, the turmoil in France will bring socialists to the center, immigration will be restricted as in United States and the right wing Government will fall in three years.

The turmoil will spread into other parts of the Euro zone damaging the economics of the region. It is time for selling the Euro.

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