Last week saw the Eurozone as one of the only major economies to be online as holidays reduced the Japanese and American working week. China manufacturing was the main factor boosting the EUR last week even as the Greece debt agreement and Eurogroup budgets failed to reach a conclusion. This week saw at least one of those major European agenda items get sorted.
The EU has agreed to unblock Greek debt bailout package 40 billion euros and a 20 percent haircut. This brings much needed relief to the Greek people. The final compromise was based on IMF figures of sustainable debt levels and timeline to repay. There are still rumblings that some parts of the agreement were political compromises meant to avoid the debt haircut to be accounted in such a way, as certain members preferred a rate discount and extended payment deadline instead of a reduced principal amount.
The European budget meetings will probably be pushed to the new year as countries as Germany and UK are too far apart from France and Poland in certain subsidies. Angela Merkel’s and David Cameron’s governments are asking for deeper cuts in order to reduce overall EU deficits, but have met resistance from other members. The rhetoric has been diplomatic and friendly from both sides, but the stalemate continues.
- Germany Stands Firm on Greece But at What Price
- 2H 2013 Recovery “On Track” – Draghi
- Rajoy Pressured to Seek Full European Bailout
- Spanish Banks are in for a Makeover
- Germany Signals more Aid Needed for Greece
- Eurozone States face potential losses on Greek Debt
- Euro Falls from 1.30 as Lack of Detail in Greece Plan Weighs Heavily
- exblog.oanda.com/20121127/esm-bailout-fund-clears-legal-hurdle/”>ESM Bailout Fund Clears Legal Hurdle
- EU Reaches Greek Aid Deal, however Debt Relief Ruled Out
- ECB Considering Helping Greece With Holdings
- German Ifo Shows Businesses are More Confident in the Economy
- German Consumer Confidence Falls Slightly in November
- Setback for pro-independance Catalonians as seperalists failed to get resounding mandate for referendum
- Trying for a Third Time for Greece
- EUR / USD – Yet 1.30 Keeps Pushing Away
- BoE’s Carney Favors Rate Plan Copied by Bernanke
- One in Ten is Underemployed in the UK
- UK GDP Growth 1% in Q3
- Olympics Helped Fuel UK Economy in Q3
- UK Public Spending Squeeze could extend to 2018 – Think Tank
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