Sarkozy is out in France. Anti-bailout politicians surged into office in Greece. Merkel is under pressure in Germany. Voters in Europe have spoken loud and clear: Bone-deep austerity cuts will not be tolerated, and the electorate is all to happy to tighten the noose around politicians who tighten the belt.
Some say the populist backlash is off base and the real risks are that Greece will return to its profligate ways and the broader eurozone will not be able to break the downward spiral of “debt contagion” as countries simply don’t have enough money to make ends meet.