French voters rejected President Nicolas Sarkozy and elected Francois Holland, the nation's first Socialist president in 17 years.
The election is seen as a referendum on Sarkozy and his policies aimed at controlling his country's debt crisis and preventing a European economic meltdown.
The impact is already being felt across the globe. Economists fear the election could rock not only the struggling European economy, but the U.S. stock market as well.
"It could mean trouble. It could mean some instability. It could mean uncertainty in the markets," French journalist Benedicte Paviot said.
CBN News spoke wih French economist Emmanuel Martin more about the situation in France. Click play for his reaction to the election and its impact on the eurozone debt crisis.
Sarkozy addressed the French people shortly after his defeat.
"I've tried to do my best to protect the French people from the unprecedented crisis that has shaken the world."
The French economy now rests on the shoulders of socialist Francois Hollande. His election threatens to undermine the French-German economic alliance that has propped up the struggling Euro-zone.
Hollande said France and Europe do not need to make big cuts. He instead wants to raise taxes and emphasize growth.
Asian stock markets dropped today and European and American markets are nervous.
"The last thing he needs is a situation where he hasn't even taken office yet and all of a sudden the markets are voting "No," on Francois Hollande and his presidency by running up interest rates, by speculating against the euro and speculating against France," said Chris Dickey, the Paris Bureau Chief for Newsweek and the Daily Beast.
Adding to the economic uncertainty across Europe is Monday's parliamentary vote in Greece. Greek voters chose two parties that want to change the nation's international bailout terms or even overturn its rescue deal.
The Greek stock market plunged 7.7 percent as the early results began coming in.
Markets around the world are reeling today as investors unload stocks and other assets that are now seen as too risky after the two weekend elections.