Any hopes Italy and Spain may have had that the Greek election result would ease pressure on their own debt crises were dashed early on Monday when financial markets reacted as if nothing had changedOK. The Greeks voted for the Status Quo. Nothing. Has. Changed.
And no matter what the Greeks did, no matter who they voted for, I am pretty sure that they wouldn't vote to take over all the Spanish or Italian debt. (I am still trying to figure out why the Germans and Scandinavians are willing to foot the bill, but that is another story.)
The cost of borrowing rose for both countries, the two big euro zone economies under fire for poor finances, widening the gap between what they have to pay and what Germany pays.That's Not Fair! Those EEEEVIL Bankers just like Germany because they have low unemployment, a balanced budget (almost) and realistic retirement benefits. It's discrimination! (Actually it is. They only want to lend money to people who have some chance of paying it back. Or weren't you paying attention to the housing collapse?)
And for the record, the phrase "pro-growth policies" is NOT synonymous with unbridled government spending. It might include things like fewer regulations for starting a company, hiring workers, etc. But out-of-control spending is how we got into this mess.