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The economic reason has faltered a long time ago; it has been replaced by the political agenda.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
Latest Comments
Iran Agreement Boosts Peace, Def...
26 Julkeith95
How about the US invading Afghanistan in 2001, Iraq in 2003 ... leading to the current unrest in the middle east while supporting the 'Saudi's' ......
Take Possession of IRA Metals We...
24 Julericgolub
Internal Revenue Code 4975 language suggests that whether the gold is held directly by the IRA or by an IRA LLC (which is nonetheless still subject...
Gold Miners Nearing Rebound
24 Julsonora69
Silver has already made a 50 cent down and up round trip as of 3:30. This is happening on a Friday, with the stock markets failing to make an advan...
Why Pensions Are A (Big) Black Swan
25 JulS W.1
No (pensions) are not a black swan, which is totally random unforeseen event.
Iran Agreement Boosts Peace, Def...
23 Julsonora69-2
Doesn't anyone remember the Iran hostage crisis, when Iran held 52 American diplomats and citizens hostage for 444 days in 1979-1981. How about 198...
What Do Greece and Louisiana Hav...
23 Julovertheedge
"The US financial system isn’t any better. ... , Actual currency is just a little over $1.36 trillion. ..." And it is assumed that about h...
Why Are We Here?
23 Julovertheedge1
No "woe is me" here. Just another buying opportunity. Using leverage is not buying, it is borrowing. It ain't bought til it's paid off....
Are Gold Investors Finally Capit...
21 JulDoom
I just don't see capitulation as a possibility. IF you sell gold, you get...what, paper money? Paper money loses a few percent (or more) of it's va...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Sandstorm Gold(Cu-Mo-Au)SSL.V
Files Early Warning Report
CA$ 3.01-6.52%Trend Power :
Corporate news
Crown PointCWV.V
Provides Operational Update and Announces Executive Change
CA$ 0.13+4.00%Trend Power :
Corporate news
Cardero Res.(Ag-Au-Cu)CDU.TO
Announces Acquisition of the Advanced Zonia Copper Oxide Project in Arizona
CA$ 0.02+33.33%Trend Power :
Corporate news
Vista Gold(Cu-Le-Zn)VGZ.TO
. Announces Receipt of an Additional A$5.9 Million Net Tax Refund Under the Australian Govern
CA$ 0.36+4.35%Trend Power :
Corporate news
First Majestic(Le-Zn-Au)FR.TO
announces friendly acquisition of Silvercrest Mines
CA$ 4.02-14.10%Trend Power :
Corporate news
Sterling Res.(Oil)SLG.V
Announces Appointment of Strategic Financial Adviser
CA$ 0.16+0.00%Trend Power :
Nominations
Polaris MineralsPLS.TO
Materials announces the opening of its aggregate terminal in the Port of Long Beach, Californ
CA$ 2.17-1.36%Trend Power :
Corporate news
Endeavour Financial(Ag-Au-Co)EDV.TO
Mining to release Q2 results on July 30, 2015
CA$ 0.47-4.08%Trend Power :
Corporate news
Premier Gold Mines(Au)PG.TO
confirms current Reserves & Resources at South Arturo
CA$ 1.87+3.31%Trend Power :
Corporate news
Guyana(Ag-Cu-Ni)GPM.V
GPM Metals Inc. provides an update of The Walker Gossan Project, Northern Territory, Australi
CA$ 0.16+0.00%Trend Power :
Corporate news
Comments closed