( CNN ) -- Suddenly , Europe is talking about growth and not just austerity . The French and the Greeks have followed voters in a series of other European countries in rejecting a pro-austerity government . The Greeks just denied their ruling parties a majority vote in the parliamentary elections , throwing into question the country 's commitment to structural and fiscal reform . And the French elected Francois Hollande , who will be France 's first Socialist president in 17 years . America has a large stake in European prosperity . Twenty-two percent of U.S. exports are sent to Europe and the two economies are stitched together with cross-border investments , interdependent capital markets and a shared view of global economic governance . Our mutual dependence has grown to the point that when either economy catches cold the other one risks more than a mild sniffle . The European elections add a degree of uncertainty for American companies thinking about investing in slow growth economies . But the impact is likely to be short-lived . As Europe goes through the process of finding a way to combine some growth with long-term deficit reduction , U.S. exports are likely to suffer . As expected , the Hollande victory and the political upheaval in Greece triggered strong reaction from markets around the world . European banks that have been harboring reserves are likely to be even more cautious going forward . And again , there is talk of Greece having to leave the eurozone . But for some time now , calls for growth have been heard from Ireland to Italy . The Dutch government suffered recently as it failed to heed calls for policies to foster growth . The new emphasis on growth reflects both a political and economic necessity . Greece has already plunged into high rates of unemployment . In Spain , the overall unemployment rate is approaching 25 % . Almost half of younger Spaniards are out of work . Adding austerity to the mix is simply politically unsustainable in mature democracies , as the election results in France and Greece demonstrate . Moreover , short-term austerity policy does not revive economic growth . Just take a look at Britain . There , the fiscal deficits have grown rather than shrink . The French government will be looked over carefully by international investors . If France was to adopt short-term tax cuts or increases in spending , it will likely be met by investors demanding higher interest rates on government bonds , which would constrain the government in its ability to promote growth . If France pursues a stimulus package , investors will want to see not only how much money is spent but also how the money is spent . For example , investments in infrastructure , technical education and scientific research should produce very different results than traditional policies of tax cuts and added unemployment compensation . What the struggling European countries should really do is learn some lessons from Germany , which has extended the retirement age , made adjustments to the social safety net and kept a tight rein on fiscal deficits . But it 's not easy to emulate the Germans . As France and its neighbors craft out new policies , slow growth in Europe will reduce some pressure on global commodity markets , particularly oil . That could be a plus for the United States . But , a decline in U.S. exports to Europe will drag down an already anemic job market at home . Economic and financial trouble in Europe is not good for the American economy . Neither is the political turmoil caused by too much austerity imposed too quickly . Traders will do well with a period of volatility caused by the changes in governments . Longer-term investors in Europe or the United States will be fine as long as they keep their eyes on economic and corporate fundamentals . The leaders of France and Germany are expected to meet next week , shortly after Hollande takes office . They have every reason to pursue reasonable policies that will benefit everyone . The opinions expressed in this commentary are solely those of Kent H. Hughes .
French and Greeks reject their pro - austerity governments in Europe . Kent Hughes : America has a large influence in European economies . He says that short - term austerity measures do not revive economic growth . Hughes : Traders will suffer from market volatility , long - term growth will do fine .