Somde very valid point from M, however :
Europe is also politically shifting to the left, leaving the UK increasingly isolated within the EU and amongst the political and economic decision makers
From what I understand from UK last local elections, the shift is also happening there.
All depends how much the Germans want to follow any French decision towards redefining the austerity pact and moving more towards growth.
It seems they are already changing minds as Merkel just lost a Lander and is facing upcoming elections...
If Europe tears up austerity and goes for a more balanced approach, encouraging growth with cuts over a longer period of time, the Bond markets will potentially disagree with this
. There are some other ways : controlled inflation, Euro devaluation, all things the US are already doing (yes those capitalist free market liberals!)
Well, this is starting to look an awful lot like the 1930s, right down to the dodgy international treaties designed to prevent war European war breaking out again and the UK slashing its defence budget
Let's try not to reach the Godwin Point this early shall we?
Regards