Will we see 1.26+ this week for GBPEUR Exchange Rates? what are your predictions email me directly Tom Holian email@example.com
According to the Spanish government the country’s debt levels will increase further as it tries to curb spending. The Treaury Minister Cristobal Montoro has been quoted as saying ‘debt would likely reach 85.3% of the country’s annual economic this year, increasing to 90.5% in 2013.’ To me this signals that it is only a matter of time before Spain needs a bailout. With almost 25% unemployment, rising debt and the property market on its knees I think it will be in for a long period of unsettled financial problems. As one of the largest countries within the Eurozone this can only create more problems for an already uncertain Euro. The two factors that have seen a Euro recovery recently have both been political; the Mario Draghi comments claiming the ‘Euro is irreversible’ and the German vote to allow the country to keep funding the continent and keeping the single currency afloat. With unemployment so high this leads to less tax revenue and a huge cost of financing those of unemployment benefits. The new austerity measures announced on Thursday were saving of 13bn Euros by cutting public sector wages, education, health and social services.
With Greece, Portugal and Ireland already having received money from Europe in the form of a bailout from both the EU and IMF I think it’s only a matter of time before Spain needs the same. This could cause huge problems not just financially but also politically for the Eurozone as some sceptics think the union needs to remove those struggling to keep up with their debt repayments. To me I don’t think any countries will leave in the short term but I do believe there is worse to come for the single currency during the fourth quarter of 2012.
Interestingly in France the new 2013 budget has announced a controversial plan to avoid austerity measures and instead taxing the wealthy and large businesses by intruding a 75% tax rate fir those earning more than 1mn Euros. Personally I think this will encourage a lot of large international companies to move from France therefore causing a loss of this proposed tax revenue as the country becomes less internationally competitive. This could also have a detrimental affect on the Euro provide some good buying opportunities for Sterling Euro exchange rates during this upcoming quarter.
If you need to move Australian Dollars from either GBP, EUR or USD feel free to click on our sister website www.australiandollarforecast.com for more detailed information. Alternatively if you have a question about how to get the best deal on your foreign exchange contact me directly Tom Holian firstname.lastname@example.org and I look forward to hearing from you.
Enjoy the rest of your weekend!