Split Votes in Euro Block Countries May Destabilize Markets

All across Europe, from the north to the south, countries have made tremendous progress in cutting discretionary spending in their central government budgets. Many European countries, however, are in recession, and the automatic spending associated with social safety net programs has risen. There is a general realization that budget deficits will not decline meaningfully as a percent of GDP until economic growth resumes. Moreover, there are signs that voters are very unhappy with their current leadership and potentially seeking changes.

France, Greece, Ireland, Italy and Germany are reviewed in terms of voter splits, and the possible ramifications.

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