http://www.telegraph.co.uk/finance/economics/11501280/Eurozone-cant-survive-in-current-form-says-PIMCO.html
The Pacific Investment Management Company (PIMCO) stated that they do not believe the Eurozone's current structure is sustainable in a long run. They believe that a monetary union without a fiscal union is not tenable in the long run. Persistently slow growth in the Eurozone has led to the rise of populist parties in many of the Euro countries. They also use the example of the Latin and Scandanavian unions of the 19th Century that lasted about 50 years. One of the few solutions they see to the problem is the potential need to establish some sort of fiscal union to complement the existing monetary union. The current system is also hurt by France and its inflexible labor market which has not had sufficient reforms. This has led to the growth of parties that are opposed to the Euro currency. The increased popularity of these parties may be indicative of a lack of faith of the people in the Eurozone.
The Pacific Investment Management Company (PIMCO) stated that they do not believe the Eurozone's current structure is sustainable in a long run. They believe that a monetary union without a fiscal union is not tenable in the long run. Persistently slow growth in the Eurozone has led to the rise of populist parties in many of the Euro countries. They also use the example of the Latin and Scandanavian unions of the 19th Century that lasted about 50 years. One of the few solutions they see to the problem is the potential need to establish some sort of fiscal union to complement the existing monetary union. The current system is also hurt by France and its inflexible labor market which has not had sufficient reforms. This has led to the growth of parties that are opposed to the Euro currency. The increased popularity of these parties may be indicative of a lack of faith of the people in the Eurozone.
1 comment:
This has been true for the last four years at least and a continued running commentary. I am waiting for the day that the European countries truly want to work together. But breaking through centuries of distrust is really difficult.
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