FRANCOIS Hollande, France's President-Elect, was last night warned that Germany, Europe's economic powerhouse, would not budge on the agreed EU austerity package.

Berlin's declaration followed the raising of doubts about the durability of the cuts after voters in France and Greece firmly rejected austerity measures in their respective polls at the weekend.

The election results yesterday caused European markets to tumble but they later recovered. In Athens, shares fell by as much as 8.3%.

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