Nightly News | May 06, 2012
HOLT: we want to bring in now John Harwood , CNBC 's chief Washington correspondent, to get some perspective on this. Hollande , John , is farther to the left, he wants to push back against these austerity measures . What's the potential fallout with international markets and diplomatically with the US?
JOHN HARWOOD reporting: Well, we've already seen today the euro fell to a three-week low. I think most people expect European markets to open somewhat lower tomorrow, and the United States markets to follow suit. Although there has been considerable expectation as we've watched the story unfold in France that it would lead to this result, and cast some cloud over the efforts to enact austerity measures and solve that debt crisis.
HOLT: And of course these austerity measures are being driven largely by the Germans. Does this create a ripple, potentially, across Europe and more push back against the -- this concept?
HARWOOD: Yes. You are seeing a push back against that, you're seeing it in the United Kingdom , as well, which is in recession. In the United States , we've already seen a slight diminution of the Republican zeal for budget cuts and you can expect Democrats and President Obama to go hard after them in the election on the prospect of cuts in Medicare and Social Security . The Republican point of view, they've got to hope that the anti-incumbent message that was sent to Sarkozy is repeated in November.
HOLT: John Harwood . John , thanks very much.