Via Bloomberg
Photo by Maryna Yazbeck on Unsplash
This is a Bloomberg article I read recently that is not for immediate benefit, but worth bearing in mind regarding the potential longer term appeal of the Euro. You might be forgiven for thinking that the Euro debt deficit was out of control with the ongoing Italian budget drama and France's budget problems. However, when compared with the US the regions government debt is smaller and, according to the IMF, projected to decrease further. See the comparison below with the divergence between the EU and US debt levels going forward
With Christine Lagarde set to be the next ECB president on November 1st , who is considered to be an excellent choice for managing extraordinary monetary policy, the idea of a EU break up from a financial catastrophe seems remote. The Eurozone breakup seems unlikely from a sovereign debt concern. In fact the Euro could serve as a safe haven from the next global financial crisis.
