Elections in France and Greece challenge austerity policies; France's Hollande vows to renegotiate parts of the EU fiscal compact; political uncertainty in Greece threatens to unravel EU-IMF bailout plan; Chinese defense minister set to begin talks in Washington DC today; Korean Customs Service launches crackdown on trafficking of human-flesh capsules; Syrian voters head to the polls; Putin sworn into office for third term as Russian president; and more

Top of the Agenda: European Election Results Challenge Austerity Policies

French Socialist François Hollande defeated incumbent President Nicolas Sarkozy in a closely contested presidential election yesterday. Hollande, who has vowed to renegotiate aspects of the EU fiscal compact agreed to late last year, is expected to challenge Berlin's strict austerity remedy to the ongoing eurozone sovereign debt crisis (NYT). At the same time, in Greek parliamentary elections on Sunday, voters empowered extreme political parties on the far-left and far-right, dealing a blow to the mainstream parties that have implemented EU-mandated austerity policies in exchange for financial assistance. The political uncertainty in Greece threatened to unravel the second EU-IMF bailout plan for Greece that was negotiated earlier this year.

Analysis

"Mr. Hollande's other concern will be to build trust with Angela Merkel, the German chancellor, who backed Mr. Sarkozy for president. Mr. Hollande has said clearly that he wants to 'renegotiate' Europe's fiscal compact--which Mrs. Merkel considers the cornerstone of stability in the euro zone--in order to emphasize growth over austerity. But he will also want to reassure her of his faith in the Franco-German tie," notes the Economist.

"French voters supported the candidate who promised to avoid the all-austerity program Sarkozy had committed himself to. Part of the success or failure of the newly elected president will be played out in Europe, where a socialist French president will be an oddity in a conservative-led EU," writes Pierre Haski in the Guardian.

"Hollande's main objective is to prolong what could be a very short honeymoon with a demanding French public, yet still convince the markets there's a sensible method to what detractors call his madness of spending to fuel growth. Mindfulness to investors is no little detail with France set to sell $15.6 billion in new bonds on May 17," writes TIME's Bruce Crumley.

 

PACIFIC RIM

Chinese Defense Minister in US Visit

Gen. Liang Guanglie, the Chinese defense minister, arrived in San Francisco on Sunday and is set to begin talks in Washington today (WSJ). Liang's visit--the first by a Chinese minister of defense in nine years--comes as U.S. and Chinese officials are working to resolve the case of Chinese dissident Chen Guangcheng by allowing him passage to the United States to study at New York University.

SOUTH KOREA: The Korea Customs Service launched a crackdown on the trafficking of so-called human-flesh capsules (KoreaTimes) from China, which apparently are made from dead babies and fetuses.

 

ELSEWHERE:

Syrian voters head to the polls

Putin sworn into office for third term as Russia's president

 

This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.