Euro crisis no closer to solution says Clear Currency’s Barry O’Neill
Barry O’Neill, analyst at trading partnership Clear Currency, says that last week’s summit has left the region no closer to a lasting solution to the eurozone debt crisis.
After the “do or die” billing of last week’s Euro summit and while it went a long way towards forging the closer economic ties needed to prevent future debt crises, we’re still no closer to a resolution. Before each summit there seems to always be a build-up of “this is the most critical ever in the history of the Euro” only to pass with nothing more than a plaster to cover the imminent cracks and easing market tension for a relatively short period of time.
We’re informed that the leaders aren’t expected to meet again until the new year so it looks like we will start 2012 still no closer to fully resolving the eurozone debt crisis. The euro has slipped in early morning trading testing 1.17 (.8547).
The main points of last week’s summit was that the Euro leaders agreed to up to 200 billion euros ($267 billion) to the International Monetary Fund to help it aid euro zone strugglers, and to bring forward the permanent rescue fund European Stability Mechanism (ESM) by a year to mid-2012.
Adding to this they leveraged the existing bailout fund to boost troubled Eurozone countries such as Italy and Spain. On the euro data front we have a quiet enough start to the week as markets will assess last week’s summit and look at short term euro direction. Tomorrow though sees the release of German ZEW Economic sentiment.
Barry O’Neill is an analyst at trading partnershiop Clear Currency