Euro Takes A Spill As French Presidential favourite Hollande Says France Won't Support The EU Fiscal Treaty

Hollande

Photo: AP Images

The favourite in France’s presidential race says France won’t approve the fiscal treaty 25 of 27 EU leaders agreed upon in December, according to Bloomberg.That said, he says he will try to renegotiate the treaty.

Socialist presidential candidate Francois Hollande has long opposed the current terms of the treaty, vowing to renegotiate it.

However, the idea that France won’t sign the treaty unless Hollande gets what he wants—mainly adding a clause about growth to a fiscal compact regulating deficit and debt controls—is a new development.

Check out the steep drop in the value of the euro against the dollar following those statements:

chart

Photo: FinViz.com

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.