Tuesday, 27 December 2011

The lull before the eurozone storm?

All may be quiet on the eurozone front over Christmas and the New year, but it is but a brief lull before the next offensive.  The markets will test the resolve of eurozone countries to come up with a workable solution to the sovereign debt crisis, problems of bank liquidity and slowing economies.

The longer term strategy agreed at Brussels may not hold once the fine print of a proposed treaty is scrutinised, and there is the small matter of the French presidential election.

See:

http://www.spiegel.de/international/business/0,1518,805554,00.html
Will German growth stall in 2012

http://www.bbc.co.uk/news/business-16338395
ECB records record cash deposits from banks.

http://www.telegraph.co.uk/finance/financialcrisis/8978989/Nervous-banks-place-record-411bn-with-ECB-as-eurozone-woes-continue.html

http://www.telegraph.co.uk/finance/financialcrisis/8976204/Treasury-plans-for-euro-failure.html

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