Speculation on the future of the EURO and the EUROZONE is rife at present but Angela Merkel and Jean-Claude Juncker remain firm and want to believe there is no crisis !
This may be true, but within days or a few weeks, the crisis in Greece will come to a head ! Will Greece have to opt to leave the EUROZONE or will its debts be written-off by Eurozone creditors ? Greece at present is no longer solvent, it is totally bankrupt !
The EUROZONE trembles not only because of a possible "Grexit" but also because the parity of the EURO has fallen by about 20 % during the last few months ! Will the Trillion Euro investment programme of the EU Central Bank stimulate an EU economic recovery, or only create inflation ?
This problem by itself would normally be a major preoccupation, but the prospect of the arrival in the EU of hundreds of thousand refugees, mainly in Italy, fleeing the opression of the Extreme Islamic State, represents a serious problem which must be addressed !
All EU countries are concerned but Chancellor Merkel and her protégé Juncker refuse to envisage changing EU treaties relative to the freedom of movement of people ! It seems ignoring this agression by the IS is easier than tackling changes in EU treaties !
However, the indirect cost of IS agression will ultimately also weigh its part in the defence of the EURO on internationoal Financial markets ! The Council of EU Leaders must therefore, recognise this and the risks involved, particularly if no action is taken or planned !
.
No comments:
Post a Comment