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Eurozone fragmenting faster than EU can act
By Paul Taylor PARIS©2024 GPlusMedia Inc.
3 Comments
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Wakarimasen
Good riddance.
Thomas Michael Lewis
Agreed. But I hae to question, the economic union as far as im aware -predating the EU of today- is doing fine, as far as im aware free trade throughout the EU is still business as usual. it is the monetry and political union that is fragmenting.
gonemad
When interest rates for the southern states reach pre-Euro levels, it looks like a normal market reaction. I can't see any reason why they should be lower. It is certainly painful for the affected countries, but it's futile to work against market dynamics. What worries me more are the extremely low interest rates for the northern countries. It shows that the money with which the ECB is flooding the markets doesn't go where it is intended. Without extreme fiscal discipline in the northern countries, we will watch the next crisis evolve there.
For banks in the Euro-zone this is only true if the banks hold a considerable amount of their own country's government bonds. A little bit more differentiation would be helpful in the discussion.