Death of the Euro?

Are we witnessing the death of the Euro and potential break up of the euro zone?

Having read Clare Allens daily posting, the FT online and Times online, I would be interested in the thoughts and opinions of others as to this situation.

Having a business and personal foot in both camps,Sterling and Euro,(like many others on here I’m sure), there are days when I want a stronger pound and days when a strong Euro would be good.

Personally I feel that the markets have made up their minds and are applying pressure to the already strained Euro, add to that the probability of Greece and Italy defaulting on their debts and the euro will crumble and this is before we bring Portugal, Ireland and Spain into the equation. The subsequent knock-on from this will obviously create much greater problems for France, Germany and UK.

This web page shows just how bad the UK’s debt position really is.


Also worth reading the comments, as there are some interesting takes on the data.

These are stat’s so as always only show one side of a many headed coin.

Hmm, In a word, No. I wouldn’t believe much that comes out of the Murdoch camp any more, and lets be honest those two papers are not exactly Euro friendly.

I have read far more interesting analysis in the Economist, which is not exactly pro European either, and they have expanded their view that whether Greece remains in or not, it would have no affect on the viability of the Euro. Everyone also needs to remember, the UK completely relies on Europe for trade, if it goes into melt down, the pound will have as much value as a between the wars Deutsch mark. It would also have massive consequences for our trading partners like America and China. If people can’t afford a loaf of bread, they won’t be buying iPads. It’s in everyone’s interest for it not to fail.

Italy’s fundamental’s are not that bad, and compared to the UK, has a far better debt ratio, and the only thing that keeps the wolves from the door in the UK is the Government bond ratings. Just check the UK’s debt burden against GDP, it is scary. The Economic forecasts for the UK are at best anaemic , while France and Germany, have up until recently been significantly better.

I happily predict the Euro will be with us for a long time to come, because the thought of it’s collapse would be truly catastrophic for us all.

A term often used in modern economics is To-big-to-fail, and this describes the Euro perfectly.


Has someone hacked your account or are you trying to get suspended?!