German FinMin Euro to Stabilize or Breakup

German Finance Minister Wolfgang Schaeuble does not mince words. Adressing the German Constitutional Court on Tuesday he painted a binary scenario. Putting pressure on the court to agree to the ESM aid package for Spain and its banking sector the Finance Minister stressed that not voting for stability is a vote for the breakup of the euro.

German citizen have so far not been pleased by the current bailout mechanism that does not tie a rescue package with the sovereign nation requesting said funds.

German Finance Minister Wolfgang Schaeuble told the country’s Constitutional Court on Tuesday that the euro zone faced a messy breakup if measures were not taken to stabilize the common currency.

“The alternative to stabilizing the common currency is a breakup with consequences that are difficult to predict,” he said at the end of a day-long court hearing on the euro zone’s bailout fund and a new fiscal pact.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza