Hollande attacks Sarkozy on markets

Socialist presidential frontrunner Francois Hollande accused Nicolas Sarkozy of encouraging market speculation for political ends after the president said victory for Mr Hollande could spur a crisis of confidence in France.

With tensions between the two rivals mounting before the first presidential election round on 22 April, Mr Sarkozy has warned markets could take flight from French securities if Mr Hollande wins power.

“The people do not want to have some kind of diktat imposed on them from outside, so when Nicolas Sarkozy tries to call the markets to come to his rescue that is not in the country’s interest,” Mr Hollande said on France 2 television yesterday.

“What is in France’s interest is fighting speculation, not encouraging it under the pretext of helping him in the presidential election.”

Mr Sarkozy – whose main asset against the popular but inexperienced Mr Hollande is his managing Europe’s debt crisis – has played on fears that France under a left-wing government committed to raising spending could lose investor confidence.

Unveiling his manifesto last week, he said Mr Hollande would lead France towards the fate of Greece or Spain.

Mr Hollande is running on a tax-and-spend programme which would bring France to a balanced budget a year later than Mr Sarkozy’s manifesto.

“If we start spending again, it’s not a risk that interest rates will rise, it’s a certainty,” Mr Sarkozy said. “It would immediately set off a crisis of confidence.”