PARIS (AP) — Political upheaval across Europe highlights rising voter discontent with budget tightening. France's new president Francois Hollande won by denouncing austerity, while weary Greek voters practically shouted "no more" after two years of cutbacks demanded in return for bailout loans. Austerity, however, isn't going anywhere just yet. Strained government financies mean even Hollande lacks money to spend on stimulus. He and other European leaders might finally seek more ways to soften its deadening impact on growth and jobs. But there aren't many obvious options.More ominously, Greece faces turbulent and uncertain days. The prospect that voter rejection of the tough terms of its bailout by a deeply polarized electorate could lead to another debt default — or even abandoning the euro. Uncertainty over how Europe will handle its government debt crisis in the weeks and months ahead left stock markets volatile on Monday. They fell sharply in the morning but recovered in some countries by the close. The sharpest selloff was in Greece, where the main stock index plunged almost 7 percent. The euro briefly spiraled to a three-month low against the dollar, hitting $1.2972. More turmoil in the eurozone would affect markets and the global economy. A financial disaster such as a government default or bank failure could spread quickly to banks around the world, while American exporters would face headwinds if sagging confidence in Europe shrinks the value of the euro against the dollar. Exports have been one of the U.S. economy's few strengths since the recession ended three years ago. Hollande, France's first Socialist president in more than a decade, campaigned for "change now" and promised higher taxes on the rich and more government spending to stimulate the economy. "Austerity can no longer be inevitable!" he shouted in his first speech after Nicolas Sarkozy conceded Sunday night. The question remains whether Germany — which is Europe's powerhouse driving the austerity agenda — will allow at least some countries in the eurozone to spend more freely in the face of a recession that is spreading across the continent. And any loosening of spending risks provoking trouble from bond markets and ratings agencies. One agency has already stripped France of its coveted AAA rating. The most nerve-wracking development occurred in Greece, where political parties that backed two bailouts lost their majority in Parliament. That opens up the possibility that Greece's new leaders could renege on commitments made to secure the country's massive rescue loans — or even decide to leave the euro. The conservatives got the first try but failed — leaving a new left-wing, party to take its turn to try. If no party can assemble a majority coalition, that would usher in another month of financial chaos before new elections, probably in June. Merkel pressed Greek leaders to stay the course. "Of course the most important thing is that the programs we agreed with Greece are continued," she said Monday. The European commission called for the "full and timely" implementation of agreed cuts. Those include €11.5 billion in new cutbacks that must be found in June in order for Greece to keep getting money under the terms of its second, €130 billion bailout. more-- http://news.yahoo.com/austerity-now-dirty-word-europe-next-185905802--finance.html