Eurozone Crisis Daily Update – Why Now?

 Really, why now? Why this noise all over again with Greece and other PIGS? The problem is not really new – it is actually renewed. The finances of Greece have not changed much since the last two years, they are still in bad shape. Neither did the situation worsen too much into the country – the deficit rather shrank a bit compared to the previous periods. According to the Economist Intelligence Unit, Greece’s current account balance stands at -6.7% of the GDP (-$20.3 billion), not much different from the beginning of the crisis.

But reading the press between the lines helps a lot sometimes (if not all the times). Reading carefully between the lines I mean. Lots of press coverage means that something is going on, especially since some of the countries are really opposing giving a further lifeline to Greece. The countries are Germany, Netherlands and Finland, two of them quite vocal. The same first two also approach local or regional elections, and this explains a lot – some politicians are trying to capitalize on the Grexit to gain support from electorate.

Of course, it was never popular in Germany to support Greece. On the other hand, the top politicians realize that besides some interest money, Germany might also loose a lot – a stable export market, support for the wider European projects or even the safe Mediterranean borders they had until now. So it also means that an internal battle between the politicians is going on. And this is why the subject is so harshly re-activated these days, when there is something to gain…

 

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