Eurozone on the verge of collapse

Eurozone on the verge of collapse


In France – the country that created the European Union and the euro – the people supported the party that opposes European integration. In the UK, won the election Eurosceptics .

Anti-European political forces are gaining popularity across the continent. But it does not bother markets : stocks are rising and bond yields are at record lows . EU could fall apart , but investors rush to buy shares. According to MarketWatch, this suggests that the European markets inflated ” bubble ” – when the market ignores bad news , it’s a sure sign . And, like all the previous ” bubbles ” , the current , European, some time may continue to inflate before burst.

According to RBC-TV , the euro began to decline on the expectation of new stimulus measures by the ECB in June , and macroeconomic statistics contributes to the weakening of the single currency . But there is no guarantee that it is a long trend. Shortly after Mario Draghi in November unexpectedly lowered the refinancing rate , the euro has again gone up. Another problem is that the Fed is in no hurry to tighten monetary policy .

Results of the elections in European countries other than a disaster for the eurozone will not name. As already noted, in France, won the election with the National Front , Marine Le Pen, who wants to return to the franc , and British people voted for the anti-European Independence Party . In Spain, until recently, anti-integration sentiment was not, but now there are gaining popularity of the party who oppose the fiscal austerity imposed by the EU membership . Anti-European political forces also won the elections in Greece and Denmark. Eurosceptics are gaining popularity in Germany.

At the same time , it emphasizes the RBC-TV , out of the crisis the EU need not collapse , and increased integration , particularly the centralization of banking regulation , which would reduce the risks to the financial system. Also need a single fiscal policy to smooth the difference in economic performance of different countries, when the boom in Germany and in Italy recession . But judging by the results of the elections , all this does not happen : the population of European countries in favor of opposite processes