Can Hollande save Greece?

Following the result of the first round of the French Presidential elections, it seems that – at last – a new wind is blowing in the European sky. The much sidestepped “growth agenda” is slowly gaining currency in the European political discourse and calls for pro-growth measures, for a European growth strategy and for a reconsideration of the strict adherence to fiscal rules are no longer received as heterodox, as dangerous or marginal. Talking about ‘the growth question’ is becoming legitimate again, it is becoming mainstream! The orthodoxy of fiscal discipline of course remains. But talking about growth is no longer a taboo (before becoming too jubilant, however, see also this piece of deja vu). From all corners of Europe, from the Dutch labour party to the Governing Council of the ECB, and from the offices of the Commission to the streets of Spain, more and more voices – not only by the disillusioned public but increasingly from key political figures and policy officials – are heard calling for the need to establish pro-growth instruments to counter-balance fiscally-induced austerity. All this is nice of course – and much needed. And the Greeks may be excused to feel that they are vindicated, as they were among the first to question (and to suffer from) the austerity recipe. They may be excused to feel that something is changing also for Greece, that new allies are coming out to support Greece’s case for growth, that the spirit of Keynesianism is coming back – and, with it, salvation for the ailing Greek economy is on its way. But there is a problem – or two.