The results in France and Greece came after a tumultuous few weeks in which the Dutch government fell and Britain's Conservative-led coalition received a licking in local elections. In all cases, front and
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The pushback in Europe could hold tough lessons for the U.S., where government spending and the deficit have emerged as major election-year issues. Presumed Republican nominee Mitt Romney has vowed to cut the deficit at a faster pace than President Barack Obama. But the mixed results of such policies in Europe
Outgoing French President Nicolas Sarkozy conceded defeat minutes after the polls closed, saying he had called Francois Hollande to wish him "good luck" as the country's new leader. ( Associated Press: Michel Euler)
In Europe, the rapidly changing political landscape is throwing up new challenges as the region struggles to end a debt crisis that has loomed over the global economy for more than two years. That is especially true for Merkel, who has led the argument that such woes can be fixed only by foisting fiscal restraint - of the kind Germany imposed after its 1990 reunification - on heavily indebted nations that share the euro currency.
In Germany, meanwhile, Merkel's party faced a setback in regional elections Sunday, with her Christian Democrats in danger of losing power in their fourth state in two years after their worst showing in Schleswig-Holstein since 1950.
Farther west, a triumphant Hollande said Sunday that he would work for "a reorientation of Europe, for growth, for employment, for the future." He added that "in quite a few European countries" hit by austerity, his arrival marked "a relief, a sign of hope." He conceded that France must get a grip on its deficit but said he wanted to add a "dimension of growth" to the debt-reduction struggle, adding: "This is what I will tell our friends and, above all, Germany, in the name of the friendship that unites us."
Analysts say voters across the region generally appear to support the notion of good fiscal governance and balanced budgets. But those spending cuts have come too quickly for European electorates, and they see their leaders as unable to link the austerity measures with new engines of growth.
"We have a problem, and all of Europe has a problem" with austerity, said Eleni Vardakis, 42, a nurse at a hospital in Athens. Public health spending has been subjected to major cuts in Greece because of bailout conditions imposed by the International Monetary Fund and the European Union. "People have done enough. They're willing to do even more if they see there's a future. We're trying to move toward the light, but it's getting further and further ahead."
Since the onset of Europe's debt crisis in September 2009, the response has been largely guided by two leaders - Merkel and Sarkozy. That partnership was key in drafting the bailouts for Greece, Ireland and Portugal, and in the inking of a fiscal accord for the region in December that places strict and enforceable limits on public spending to reassure investors
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