"Hollande’s victory means the end of 'Merkozy,' the Franco-German axis that has enforced the austerity regime of the past two years."

"This would be a 'dangerous' development if that strategy were working, or even had a reasonable chance of working. But it isn’t and doesn’t; it’s time to move on. Europe’s voters, it turns out, are wiser than the Continent’s best and brightest."

Writes Paul Krugman, opining on the French election. Move on... I understand the impulse, but to what?

One answer — an answer that makes more sense than almost anyone in Europe is willing to admit — would be to break up the euro, Europe’s common currency. Europe wouldn’t be in this fix if Greece still had its drachma, Spain its peseta, Ireland its punt, and so on, because Greece and Spain would have what they now lack: a quick way to restore cost-competitiveness and boost exports, namely devaluation....

But that's not the right answer, per Krugman. That would be "highly disruptive" and "a huge defeat for the 'European project.'" (Can you remember what that is?) Krugman's solution is to abandon "fantasies of prosperity through pain" — "the confidence fairy doesn’t exist" — and grow the economy.