Realists watching the events in Europe over the last few years accepts that there is at least a small risk of the whole thing falling apart. (Some will say “I told you so,” but it remains a most distressing turn of events.)
Yet instead of the usual talk of entire countries withdrawing from the euro, we are increasingly faced with the prospect of individual countries splintering along regional lines. Continue Reading
A few weeks ago Mario Draghi, president of the European Central Bank, unleashed the bazooka. Continue Reading
Markets rejoiced at the outcome of the latest EU summit. After recent mediocre performance the euro increased its value against the dollar by 1.7% on Friday. Investors in Spanish and Italian government bonds slowed their race to the exit, making it more affordable for these governments to carry the debt burden and therefore a bit less likely that they will require bailouts. European stocks benefited as well: Italian stocks jumped by 6.59% and Spanish stocks by 5.66% — big gains for a single day.
So, is Europe now “solved”? Continue Reading