Tuesday, January 28, 2020
No menu items!

Single Currency Face-Off Puts Eurozone In Turmoil

Must Read

Trump And Teenager Go Toe To Toe Over Climate Change Spat

A David and Goliath battle between US President Donald Trump and teenage climate change campaigner Greta Thunberg has broken...

Pineapples Are The Best Way To Keep Snorers Quiet

The best remedy to stop your partner snoring and keeping you awake is a pineapple, say scientists. But the solution...

Millions Face Losing WhatsApp Messaging In Big Switch Off

Millions of users of the social media network WhatsApp face a crunch time within a few days as the...

The worrying spectre of the instability of the so-called PIIGS economies is threatening the world financial order again – a decade after first becoming evident.

The world’s governments thought the crisis had passed when the Eurozone bailed out Portugal, Ireland, Italy, Greece and Spain – but now Italy is threatening to undo the good work repairing the world economy.

A constitutional crisis in Italy, triggered by coalition parties and the president facing off over the appointment of economist Paolo Savona to the Finance Ministry led President Sergio Mattarella to veto the move.

Savona was an outspoken critic of the single currency in the past – and although no party campaigned on this issue in the recent election, his views have become a sticking point.

Heading for another general election

The result was a country in political turmoil and probably heading for yet another general election in September.

Meanwhile, worries about the country’s debt have seen stock markets tumble and central banks rush to take avoiding action.

Politicians in the European Union fear the parties will campaign on an anti-single currency platform this time around – and against the single currency could lead to more turmoil in the European Union.

A decade on, the problem is more complicated.

Brexit adds another dimension to the election as Europe has concerns that a good break-up deal for Britain would encourage other countries to leave the bloc.

Ripples upset central banks

The ripples also mean issues for the US Federal Reserve, which plans a June interest rate rise to continue the road to recovery.

To do so makes the US dollar stronger and other central banks in the Asia Pacific are already planning their own fight back to bolster their economies – including the economic powerhouses of Indonesia and China.

And what about the Bank of England? Already tackling economic uncertainty over Brexit, the last action the bank wants is to return to monetary easing.

The pressure is on Italy to head off the danger – but Italian politicians have a poor track record in managing the economy and are looking inwards rather than considering action to help those outside their borders who may be viewed as contributing to the problem.
>

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Trump And Teenager Go Toe To Toe Over Climate Change Spat

A David and Goliath battle between US President Donald Trump and teenage climate change campaigner Greta Thunberg has broken...

Pineapples Are The Best Way To Keep Snorers Quiet

The best remedy to stop your partner snoring and keeping you awake is a pineapple, say scientists. But the solution is not to ram the...

Millions Face Losing WhatsApp Messaging In Big Switch Off

Millions of users of the social media network WhatsApp face a crunch time within a few days as the app will go offline for...

What You Need To Know About The Deadly Coronavirus

The outbreak of  deadly coronavirus in China has led to the death of nine people and left hundreds more infected. The virus is centred on...

New App Will Stop Forgotten Signups Taking Your Money

How many times have you signed up for a trial subscription service and forgotten to cancel the payment? Everyone is guilty, but now a new...

More Articles Like This