Mr. Hollande has also promised to expand public spending by such efforts as raising state spending, reducing the retirement age to 60 years for those having worked more than 41.5 years, hiring 150,000 youths in state-subsidized jobs, and hiring more teachers and police officers.
In the second round of presidential voting held on May 6, Mr. Hollande won the first vote and became the country’s first socialist president in 17 years. The market now appears to have adopted a wait-and-see attitude before it judges the credibility of his fiscal consolidation plan as well as the fate of the Fiscal Compact.