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Socialist Francois Hollande defeated conservative incumbent Nicolas Sarkozy on Sunday to become France’s next president, heralding a change in how Europe tackles its debt crisis and how France flexes its military and diplomatic muscle around the world.

Exuberant, diverse crowds filled the Place de la Bastille, the iconic plaza of the French Revolution, to fete Hollande’s victory, waving French, European and labor union flags and climbing the column that rises at its center. Leftists are overjoyed to have one of their own in power for the first time since Socialist Francois Mitterrand was president from 1981 to 1995.

“Austerity can no longer be inevitable!” Hollande declared in his victory speech Sunday night after a surprising campaign that saw him transform from an unremarkable, mild figure to an increasingly statesmanlike one.

Sarkozy is the latest victim of a wave of voter anger at government spending cuts around Europe that have tossed out governments and leaders over the past couple of years.

In Greece, a parliamentary vote Sunday is seen as critical to the country’s prospects for pulling out of a deep financial crisis felt in world markets. A state election in Germany and local elections in Italy were seen as tests of support for the national government’s policies.

Hollande promised help for France’s downtrodden after years under the Sarkozy, a man many voters saw as too friendly with the rich and blamed for economic troubles.

Hollande said European partners should be relieved and not frightened by his presidency.

“I am proud to have been capable of giving people hope again,” Hollande told huge crowds of supporters in his electoral fiefdom of Tulle in central France. “We will succeed!”

Hollande inherits an economy that’s a driver of the European Union but is deep in debt. He wants more government stimulus, and more government spending in general, despite concerns in the markets that France needs to urgently trim its huge debt.

Sarkozy conceded defeat minutes after the polls closed, saying he had called Hollande to wish him “good luck” as the country’s new leader.

Sarkozy, widely disliked for budget cuts and his handling of the economy during recent crises, said he did his best to win a second term, despite widespread anger at his handling of the economy.

“I bear responsibility … for the defeat,” he said. “I committed myself totally, fully, but I didn’t succeed in convincing a majority of French. … I didn’t succeed in making the values we share win.”

With 75 percent of the vote counted, official results showed Hollande with 51.1 percent of the vote compared with Sarkozy’s 48.9 percent, the Interior Ministry said. The CSA, TNS-Sofres and Ipsos polling agencies all predicted a Hollande win as well paydayloans.

Hollande has virtually no foreign policy experience but he will face his first tests right after his inauguration, which must happen no later than May 16.

Among his first trips will be to the United States later this month for summits of NATO _ where he will announce he is pulling French troops out of Afghanistan by the end of the year _ and the Group of Eight leading world economies.

Hollande’s first challenge will be dealing with Germany: He wants to re-negotiate a hard-won European treaty on budget cuts that Germany’s Angela Merkel and Sarkozy had championed. He promises to make his first foreign trip to Berlin to work on a relationship that has been at the heart of Europe’s postwar unity.

Germany’s foreign minister, Guido Westerwelle, congratulated Hollande on Sunday night and said both countries will keep on cooperating closely in driving the European Union’s policies and be “a stabilizing factor and a motor for the European Union.”

At home, Hollande intends to modify one of Sarkozy’s key reforms, over the retirement age, to allow some people to retire at 60 instead of 62. He also plans to increase spending in a range of sectors and wants to ease France off its dependence on nuclear energy. He favors legalizing euthanasia and gay marriage.

Sarkozy supporters call those proposals misguided.

“We’re going to call France the new Greece,” said Laetitia Barone, 19. “Hollande is now very dangerous.”

Sarkozy had said he would quit politics if he lost, but was vague about his plans Sunday night.

“You can count on me to defend these ideas, convictions,” he said, “but my place cannot be the same.”

His political allies turned their attention to parliamentary elections next month.

People of all ages and different ethnicities celebrated Hollande’s victory at the Bastille. Ghylaine Lambrecht, 60, who celebrated the 1981 victory of Mitterrand at the Bastille, was among them.

“I’m so happy. We had to put up with Sarko for 10 years,” she said referring to Sarkozy’s time as interior and finance minister and five years as president. “In the last few years the rich have been getting richer. Now long live France, an open democratic France.”

“It’s magic!” said Violaine Chenais, 19. “I think Francois Hollande is not perfect, but it’s clear France thinks its time to give the left a chance. This means real hope for France. We’re going to celebrate with drink and hopefully some dancing.”

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Oil prices rose to near $104 a barrel Tuesday in Asia after a successful Spanish debt sale eased fears that Europe’s debt crisis could flare again.

Benchmark oil for May delivery was up 62 cents to $103.55 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 10 cents to settle at $102.93 in New York on Monday.

Brent crude for June delivery was down 23 cents at $118.45 per barrel in London.

Spain sold euro3.2 billion ($4.2 billion) of 12- and 18-month bonds at an auction Tuesday, a day after a jump in Spanish yields sparked concern that the country may require an international bailout to avoid a debt default.

Stock markets, which oil traders often look to as a measure of overall investor sentiment, rose in early trading Tuesday in Europe.

Most analysts are forecasting a mild recession in Europe this year, but renewed contagion from the continent’s debt crisis could further hurt economic growth.

“Economic conditions in the big developed economies remain weak and there is potential for further downward revisions to crude oil demand,” National Australia Bank said in a report.

Investors are also mulling the impact of meetings last weekend about Iran’s nuclear program. Talks among Iran and six world powers didn’t produce any concrete agreements, but negotiators said the tone was better than previous meetings, and the sides agreed to meet again on May 23.

Concern that a military strike by Israel and the U.S. against Iran’s nuclear facilities would disrupt global crude supplies has helped push crude up from $75 in October. Iranian crude output has fallen in recent months as the U.S. and Europe begin to impose economic sanctions on OPEC’s second-biggest producer.

“While the recent Iran talks were ‘constructive’, they did not offer much in the way of providing markets with any sense of supply certainty,” NAB said.

In other energy trading, heating oil was up 1.2 cents at $3.13 per gallon and gasoline futures gained 0.5 cents at $3.27 per gallon. Natural gas fell 0.7 cents at $2.01 per 1,000 cubic feet.

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During the last three years, state Rep. Steve Webb, the ranking Democrat on the House utilities committee, has accepted more in free gifts from Ameren than any Missouri public official has accepted from any single lobbying group.

In 2011, he also received more in meals and event tickets from AT&T — $1,674 worth — than any other Missouri politician received from the telecommunications giant, according to data from the Missouri Ethics Commission.

Missouri is one of a few states that places no limit on lobbyist gifts to lawmakers, and by no means is Webb, who represents Florissant, the only politician who gets into ballgames and concerts for free.

But from 2009 to 2011, Webb received tickets to 51 separate events — from the World Series to shows at the Fox Theatre to professional wrestling — with 40 of the events coming courtesy of utility companies. Twenty-eight sets of tickets came from Ameren and, in all, the utility spent $8,094 on Webb and his family during the three-year span.

“It’s not a conflict of interest,” Webb said. “First, I’m the ranking Democrat on the utilities committee. I work closely with these different utility companies on pending or upcoming legislation.”

Webb said going to events and dinners with lobbyists gives him a chance to form a relationship and discuss issues with them, and that the gifts don’t affect his views. He said he gives away some of the tickets.

And while Webb isn’t the only member of the utilities committee who’s received gifts from Ameren, he has accepted far more than any other members. Republican Jeannie Riddle of Callaway County comes in a distant second, with $1,799 in gifts accepted by her and her family and staff during the past three years.

The utilities committee oversees legislation related to the development and regulation of utilities, communication and technology, and energy-related matters.

Excluding Webb, 17 of the committee’s 25 other members have accepted gifts from Ameren. Combined, they have received $6,502 in gifts, about $1,600 less than Webb.

In 2010, Webb also accepted $777.50 worth of tickets and food for Rams and Cardinals games and a Jay-Z concert from Laclede Gas Co. In November 2011, he received $279 in concert tickets from Kansas City Power & Light Co.

“I think it’s obvious that they have no influence on how I may feel on any particular issue,” he said, citing his strong opposition to a bill that would change discrimination workplace laws, a measure supported by the St. Louis Regional Chamber and Growth Association, of which Ameren and AT&T are members. Ameren CEO Tom Voss is chairman of the RCGA.

And if Ameren’s spending on politicians is so influential, Webb said, why haven’t large pieces of legislation involving the company — such as last year’s proposal to charge consumers to obtain a site permit for a second nuclear plant near Fulton, Mo. — been passed by the Legislature?

A bill similar to last year’s legislation was referred to the House utilities committee last month. Webb is one of several dozen co-sponsors of the bill, which would allow an electrical utility seeking an early site permit to recover up to $45 million in costs from ratepayers. The bill also would reduce the share of utilities’ operating revenues that can go to fund the Public Service Commission, the state’s utility regulator.

“I’m a minority in the minority party,” Webb said. “We don’t push the legislation. We don’t decide what legislation comes to the floor.”

George Connor, a political science professor at Missouri State University, said it was nearly impossible to prove that lobbyist gifts have an impact on how a legislator votes. But typically, he said, “They’re not giving you gifts to get you to vote a certain way, they’re giving you gifts because you vote a certain way.”

The most important thing for a lobbyist to have is access, Connor said, and handing out tickets is one way to achieve that.

While gifts may not influence a politician, he said, “The appearance of impropriety is just as bad as impropriety, as far as I’m concerned.”

Webb said that lobbyist gifts were not nearly as significant as the unlimited campaign donations Missouri allows. Free tickets and meals are ’small potatoes compared to someone getting a $100,000 check,” he said.

Ameren, which has raised its rates four times during the last five years, recently proposed a 15 percent rate increase. Webb said he was concerned about the proposed hike and had discussed the matter with Ameren’s lobbyists. “We don’t want any unfair rate increases,” he said.

It’s up to the state’s utility regulator to decide whether the increase is fair, Webb said.

“Ameren has some of the lowest rates in the nation,” he said. “We want to keep it that way.”

Webb said that it might not be necessary for his meetings with lobbyists to take place at concerts and baseball games but maintained that gifts from utilities weren’t a problem.

“Some may have a difference in opinion on whether or not you should be taking tickets,” he said. “My opinion is, there’s nothing wrong with it.”

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Greece is missing its debt-cutting targets, German Finance Minister Wolfgang Schaeuble told lawmakers today, intensifying pressure on Greek politicians to deliver on austerity promises.

Schaeuble said in Berlin that Greece

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Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PARIS (AP) _ Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

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Italy’s government on Tuesday approved the release of euro4.8 billion ($6.4 billion) from state coffers to fund strategic infrastructure projects aimed at stimulating economic growth.

The funds will pay for highway projects, high-speed railways and retractable underwater barriers to help protect Venice from flooding. They were released as part of Premier Mario Monti’s program to help Italy exit the sovereign debt crisis and build market confidence to save the euro currency.

Monti, an economist and former EU commissioner who took office less than three weeks ago, announced emergency measures on Sunday that seek to save euro30 billion through austerity measures, and reinvest euro10 billion of savings from those measures to enhance growth, stuck at zero for a decade.

The emergency decree allows the funds to be released immediately, but Parliament must still convert the measures to law. Approval is expected by Christmas, although major parties on the right and left want to make changes.

Monti has combined the powerful economic development and infrastructure ministries under Corrado Passera, formerly CEO of Banca IntesaSanpaolo, to ensure good coordination on projects that can boost economic growth. Many of the projects have been stalled in progress or stuck in planning due to a combination of local resistance and interruptions in state funding.

Economists have mixed views on how effective infrastructure programs are for spurring economic growth, with most favoring privately funded projects for better stimulus. Still, longer-term projects, like railways, usually require state funding because the investment period is too long for many investors.

The new funding includes euro2 billion to upgrade the Treviglio-Brescia and Milan-Genoa railway lines, both in the north, to highspeed, euro598 million for highways, and euro600 million for the Venetian lagoon mobile barriers, a project already more than two years behind schedule due to financial problems.

The projects are expected to stimulate growth through putting people to work, as well as keeping construction contracts flowing.

The gates _ called Moses, after the Old Testament figure who parted the Red Sea _ would be activated when the tide reaches 110 centimeters (43 inches), which happens on average four times a year. St. Mark’s Square floods when the tide reaches just 80 centimeters (31.5 inches) _ and most of the city’s artistic treasures are kept above 2 meters (6.6 feet) for their protection.

Other measures taken by the Monti government include raising the pension age and seniority requirements, slimming down provincial governments, reinstating a tax on first homes, raising taxes on large boats, high-performance cars and private jets and helicopters.

Monti has described the measures as a first step by his government of technocrats tasked with reforming the Italian economy, balancing its budget and spurring moribund growth. He has emphasized that he will step down at the end of his mandate, which could run into 2013, a fact that frees him from re-election pressures that have hampered long-needed reforms.

Unicredit economic analyst Chiara Corsa said the measures appear “sufficiently bold” to allow Italy to balance its budget by 2013,” even with recession looming.

“In turn this should allow Italy’s debt-to-GDP ratio to enter a downward trajectory soon,” she said.

Italy’s debt of euro1.9 trillion, or 120 percent of GDP, is considered too big to bail out if the eurozone’s third-largest economy cannot continue to turn over its debt.

Monti’s measures come on top of euro59.8 billion in adjustments made by Silvio Berlusconi’s government, before he resigned after proving unable to take even more stringent, politically costly, steps

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Italian Premier Silvio Berlusconi is expected to resign after parliament’s lower chamber passes European-demanded reforms, amid continued debate among the embattled leader’s allies over who should take his place.

While respected economist Mario Monti is clearly the top choice of Italy’s president and international markets to steer the country out of its debt crisis, members of Berlusconi’s own Peoples of Liberty Party and allied Northern League remain split low fee payday advance.

It isn’t clear if the opposition will be enough to scuttle President Giorgio Napolitano’s apparent plan to ask Monti to try to form a government once Berlusconi resigns, which is expected Saturday afternoon after the Chamber of Deputies approves economic reforms.

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Italy’s borrowing rates spiked early Tuesday to their highest level since the euro was established in 1999 ahead of a budget vote in Parliament that could force the resignation of Premier Silvio Berlusconi.

With speculation over Berlusconi’s future swirling, the markets are focused in on developments in Rome, which has become the epicenter of Europe’s debt crisis. Berlusconi’s government is under market pressure to enact quick reforms to protect Italy from the growing sovereign debt crisis, but has been hobbled by a weak coalition and political gridlock.

What happens in Italy is a particular worry as it’s the eurozone’s third-largest economy. With debts of around euro1.9 trillion ($2.6 trillion), Italy’s debts are thought to be too big for Europe to bail out.

Higher rates would make it more difficult for Italy to rollover its debts and will mean they consume more and more of national income. Italy has over euro300 billion ($412 billion) to raise in 2012 alone.

By mid-morning, the yield on Italy’s ten-year bonds was up 0.12 percentage point at 6.66 percent, down from an earlier high of 6.74 percent. A rate of over 7 percent is considered unsustainable and proved to be the trigger point that forced Greece, Ireland and Portugal into accepting the need for financial bailouts.

The vote later looks like it’s on a knife-edge, with Berlusconi’s coalition showing signs of fracture. Italian news agency ANSA reported that Finance Minister Giulio Tremonti hurriedly departed from a meeting of eurozone finance ministers in Brussels to return to Rome payday loan lenders in states.

In less tense times, the vote would have meant routine approval of the 2010 state accounts, but instead it has become a crucial test of Berlusconi’s survival as head of his 3 1/2 year-old center-right government. Last month, the vote of the same measure failed by one vote. Chamber whips were meeting a few hours before the vote to map out a strategy for the vote, which is likely to take place Tuesday afternoon.

Opposition forces were considering boycotting the vote so the numbers would more clearly show just how many deputies still support the government. If Berlusconi’s forces number less than 316 deputies _ or one more than half the number of the 630-member chamber, it would be plain that the media mogul no longer can count on a majority in the lower house of Parliament.

The government could still win the vote, by commanding more than half of those showing up to vote, but a dismal showing could show Berlusconi is too weak politically to continue to govern.

If he gets through Tuesday’s hurdle, Berlusconi has indicated he would put a vote next week on the anti-crisis measures to a confidence vote. If it loses that vote, Berlusconi would have to resign.

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