A few weeks after Spain and Italy have hit the headlines the Euro has really begun to be questioned as a credible currency, and now France have hit the headlines and Germany seems unwilling to entirely back the Euro following a series of mixed messages. Difficulties regarding fiscal policy in Europe have been mooted for some time and you can find them well discussed on this site.
Put very simply the Eurozone seems unsure whether they are entirely together or not. The European Central Bank would suggest that they are, single economic policy for all in the zone is certainly a statement of togetherness, but then why is there no European policy for Bank solvency? Why is there no common Euro Bond? It is a very strange conglomerate where countries are left very much to fend for themselves simply without the power to control their own fiscal strategy in terms of interest rates. Ask any Greek, Irish or Portuguese how they feel about interest rates rising in Europe and you will catch my drift.
While people are questioning the concept of the Euro (and prematurely so, in my book) it has fundamental flaws which will make it very difficult to survive in the long term. However too much depends on the viability of the Euro as a currency to simply collapse it and start over. It is a lot more trouble than it’s worth and so I can’t imagine it likely that the Euro will dissolve anytime soon.
This doesn’t mean that the Euro will not lose ground. It is probable the Euro will struggle as speculators worry about the uncertain market and about sovereign debt considering muddled economic policy. If I was investing in currency, with the possible exception to Dollar and Sterling, I wouldn’t want my funds in Euros until this has been resolved.
If you have your funds in Euros or are looking to purchase and are worried about the Eurozone and the single currency then do not hesitate to get in touch to discuss how this may effect your transfer and what may happen in the unlikely event of a Euro collapse. You can contact me (James Matthews) directly by phone or email – 01494 787 451 or email@example.com.