Analysts are watching to see how German Chancellor Angela Merkeland Francois Hollande can overcome their differences on how toresolve the crisis. Stock markets and the euro have fallen amid continuing politicaluncertainty in Greece. The chairman of the group of eurozone finance ministers,Jean-Claude Juncker, insisted on Monday that they would do”everything possible” to keep Greece in the euro. Francois Hollande was sworn in for a five-year term at the Elysee Palace in Paris, becoming France’s first Socialist president in 17 years. In his inauguration speech, Francois Hollande said he wished todeliver a “message of confidence”. Heavy Duty Truck Diagnostic Scanner
“My mandate is to bring France back to justice, open up a newpath in Europe, contribute to world peace and preserve theplanet.” The new president said he was fully aware of challenges facingFrance, which he summarized as “huge debt, weak growth,reduced competitiveness, and a Europe that is struggling to emergefrom a crisis”. Francois Hollande also said he wanted other European leaders tosign a pact that “ties the necessary reduction of deficit tothe indispensable stimulation of the economy”. “I will tell them the necessity for our continent is toprotect, in an unstable world, not only its values but itsinterests in the name of commercial exchange,” he added. After the ceremonies, Francois Hollande named Jean-Marc Ayrault,leader of the Socialist group in parliament, as his prime minister. China Scania VCI 2
Jean-Marc Ayrault, who is regarded as a Germanophile with goodcontacts in Berlin, had been widely tipped for the post. Francois Hollande, 57, has spent the past week preparing to take upthe presidency, and now the work begins in earnest. Shortly after his swearing in, Francois Hollande left for Berlin tohave dinner with Chancellor Angela Merkel, who said she wouldwelcome the new leader “with open arms”. But Angela Merkel s embrace will hide some embarrassment after sheopenly supported Nicolas Sarkozy in the election battle. China Copying Machines
“We don’t think the same on everything,” Francois Hollande acknowledged on French television on Monday. “We’ll tell each other that so that together we canreach good compromises.” Francois Hollande has demanded that a European fiscal pact thatcracked down on overspending be renegotiated to include a greateremphasis on measures to stimulate growth, while Germany insists thetreaty must be respected. Whatever their differences, the crisis in the eurozone will putthem under huge pressure to compromise, our correspondent says. As the eurozone’s two biggest economies – and biggestcontributors to its bailout funds – Germany and France arekey decision-makers over the strategy supposed to pull Europe outof crisis. According to official figures released on Tuesday morning, theFrench economy showed no growth in the first quarter of 2012.Growth in the final quarter of 2011 was also revised down to 0.1%from 0.2%.
However, Germany’s economy grew by a stronger than expected0.5% in the first three months of the year. Following his German trip, Francois Hollande will hold his firstcabinet meeting on Thursday followed by a visit to Washington tomeet US President Barack Obama on Friday.