Greece “in jeopardy”
ING senior economist Martin van Vliet explained in the eZonomics May 2012 economic update video that Greece’s position in the European Monetary Union was in jeopardy – particularly given the “rejection of austerity” in the country’s May general election. But ING’s baseline scenario was that Europe would try to keep Greece in, said van Vliet.
“Whether or not Greece indeed stays in, further action is likely from the European Central Bank,” he said.
Problems in Spain were also mounting.
Euro to weaken further?
Against this backdrop, equity markets around the world dropped and “safe haven flows” pushed 10-year German bund yields to record lows.
Van Vliet said the euro was already at nine-year lows in trade-weighted terms and looked set to weaken further.
“A weaker euro would improve the Eurozone’s export outlook,” he said. “In fact, significant euro depreciation could be a key ingredient in preventing the current crisis from turning really ugly.”
May 28, 2013Economic update May 2013 We hear a lot about government debt in the aftermath of the global financial crisis…
April 15, 2013Economic update April 2013 Japan is half a world away from Europe but some new, extraordinary moves from its…
April 2, 2013How to protect my loved ones If you’ve got children, you know how it feels when the most important person in…