Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Eurozone’s Fragile Structure

IMG Auteur
Published : December 17th, 2012
388 words - Reading time : 0 - 1 minutes
( 2 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Crisis Watch

 

 

 

 

We won’t be cruel by reminding you that François Hollande, recently, and his predecessor Nicolas Sarkozy, last spring, had declared the Eurozone crisis « over »... All the different bailout plans are only fragile undertakings, and the smallest shock can bring them down, as we know and are witnessing right now.


Greece, again and always, isn’t out of the woods. Last week, it secured yet another plan, for 84 billion euros (40B for a debt haircut and 44B of fresh money). Everyone knows this plan won’t be the last, and that a massive restructuration is needed. And as for Spain, banks received 37 billion euros, and it’s only the first tranche!


We had almost forgotten Ireland and Portugal, but we shouldn’t have. Ireland central bank’s governor just announced that « it may need considerably more time to repay » the 85 billion euros Ireland has received as part of its bailout plan. In Portugal, the newspapers are writing that the country will ask for the same conditions that Greece got, meaning debt haircuts and more money.


But the big scare of the week comes from Italy. Two events are changing things : Silvio Berlusconi announced his political return, and Mario Monti resigned. There will be anticipated elections in February or March, and this will bring some uncertainty for a while. All the patient work Mario Monti has done with structural reforms might be for naught, and the markets are weary of Italy.


The euro crisis is far from over. We are only witnessing periods of relief that are bought with more bailout plans, which only adds to the mountain of debt and to the instability of the system.


The economic reason has faltered a long time ago; it has been replaced by the political agenda. As the French elections were nearing, it was paramount to avoid a grave Eurozone crisis. Now, the horizon is fixed on the general elections in Germany in September 2013. The institutions of the Eurozone will do everything in their power to avoid a crisis, including showering all the above-mentioned countries with billions of euros. The ECB will oil the machine, and Angela Merkel will be able to say that the euro crisis is over or, as the prudent German she is, that it’s about to be solved. And we’ll see after the election!

 

 

Thanks to Philippe Herlin from www.goldbroker.com
Data and Statistics for these countries : Germany | Greece | Ireland | Italy | Portugal | Spain | All
Gold and Silver Prices for these countries : Germany | Greece | Ireland | Italy | Portugal | Spain | All
<< Previous article
Rate : Average :5 (2 votes)
>> Next article
Philippe Herlin is a researcher in finance and a junior lecturer at the Conservatoire National des Arts et Métiers in Paris. A proponent of extreme-risk thinkers of the Austrian School of Economics, he brings his own views on the actual crisis, the Eurozone, the public debts and the banking system. He is also contributor at www.Goldbroker.com
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Integra Gold(Gems-Ag-Au)ICG.V
Integra Gold Closes $14.6 Million Private Placement with Eldorado Gold
CA$ 0.27+0.00%Trend Power :
Corporate news
Eldorado Gold(Au-Fe)ELD.TO
Integra Gold Closes $14.6 Million Private Placement With Eldorado Gold
CA$ 3.93-3.20%Trend Power :
Corporate news
Range Res.RRS.AX
Range Resources' Deep Focus on Marcellus to Affect Growth
AU$ 0.01+0.00%Trend Power :
Corporate news
Freeport McMoran(Cu-Mo-Au)FCX
Union mulls action after 700 workers fired at Freeport mine in Chile
US$ 10.64+1.33%Trend Power :
Exploration and drilling
Peabody(Coal)BTU
Patriot Coal Bankruptcy Auction Set
US$ 2.70+12.97%Trend Power :
Corporate news
Consol Energy(Coal-Ngas)CNX
Notable option activity in equities
US$ 15.23+5.84%Trend Power :
Corporate news
Consol Energy(Coal-Ngas)CNX
Traders see end to slide in Consol
US$ 15.23+5.84%Trend Power :
Corporate news
Tanami Gold(Ta-Au)TAM.AX
TAM – Completion of Central Tanami Deal with NST – 31 July 2015
AU$ 0.04+2.50%Trend Power :
Corporate news
Arch Coal(Au-Coal-Cu)ACI
Arch Coal, Inc. Announces Extension of Private Debt Exchange Offers and Support Agreement
US$ 9.31+13.40%Trend Power :
Corporate news
Alumina Ltd.AWC.AX
Noranda Announces Initial Intercontinental Alumina Shipment as Part of Multi-Shipment Arrangement with Chinese Aluminum Smelter
AU$ 1.30-0.61%Trend Power :
Corporate news
Comments closed