With cracks in the EU growing deeper by the day more and more are questioning the efficacy of  the austerity measures favored by Merkel. Earlier today it was suggested that her bias has changed after she noted that stimulus and growth will be vital in resolving problems in Greece.

In my opinion it has been a long time coming and can only help the situation moving forward. Their intent is to balance the books through cutbacks but in practice they have only stunted growth and led to crippling unemployment accross several member states. The voice of anti-austerity was given a new awakening after newly sworn in French-President included domestic-growth and anti-austerity policies within his policy platform.  Pressure was further increased today on German Soil after the Social Democrats challenged her commitment as a long-term sollution the problem.

With Greece currently setting a benchmark as to the future of the Single Currency it seems to be a good idea to exploring new policy avenues. The consensus accross the zone is one of resentment due to their byproducts of an increasing budget defiicit. If we can see signs of growth over the coming weeks than we could well see the Euro-exchange rates gain some stabillity and rates move closer back to low 1.22/1.23 mark.  Feel free to give us a call on 0800 328 5884, speak to your broker, apply for a free no cost/ no obligation account or email me on cbk@currencies.co.uk