Tuesday, May 8, 2012

Political uncertainty leaves euro vulnerable

(Reuters) - The euro fell on Tuesday and was vulnerable to more losses as political uncertainty in Greece and a change of French president threatened to derail the austerity plans at the heart of efforts to tackle the euro zone debt crisis.

Greece's two main pro-bailout parties failed to win a majority in weekend elections and attempts to form a coalition government were not expected to succeed, leaving questions over the country's ability to avert bankruptcy and stay in the euro.

Meanwhile, Socialist French president-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity. Read More