Over the last couple of months the economic pressures on both Britain and Europe have been intensifying, in fact in recent weeks there have been suggestions that the Eurozone is reaching its final days. However, a balanced view of Europe shows that although their economy is under pressure there is little chance of the collapse of the Eurozone. This brief report will outline why;
Europe is, in economic terms, still in its infancy and with 17 different economies all at various levels coming under 1 governing body it will take time for it to settle in and the recent Global recession has caused some difficulties. However, the strength of the German and French economies has meant that the weaker economies such as Greece have been able to be supported. The Germans especially have now put so much money into “propping up” the Eurozone that they surely have too much invested to let it fail, it is unlikely hey could afford to now write off the billions of Euros they have invested.
To reinforce the solidarity of the Eurozone it was announced n Friday that a historic agreement had been put in place to help the economic ntegration of the European countries, with the exception of the UK. The pact focusses on the EU member states maintaining strict controls over tax revenues and budget deficits with penalties in place for any breaking of the rules. The design of this treaty is to prevent any Euro countries allowing its deficit to grow out of control and reduce the need for another Greek style bailout.
With this agreement giving Brussels more control over all the EU economies the outlook for Europe is improving, however, there is still a long way for this story to run but it would not be surprising to see France and Germany drag the rest of Europe through this current issue and into better, stronger and more stable times ahead.
In the meanime we have seen Sterling Euro hit a ten month high against the Euro presenting clients with fantastic opportunities for those clients looking to buy Euros. However, today we see inflation data released for the UK which could mean this spike is only short lived so for those with a currency requirement, especially those clients who need to transfer Euros call us today on 0800 3285884 or from abroad 0044 1494 725353 and speak to one of our specialiast currency brokers.