An Outlook For Europe And Its Banks

Posted on October 8, 2017 By

The crisis has mixed feelings at the lookout post-2012 Europe firmly in hand. It had started with the impending sovereign default of the Member country of Greece, but as it turned out, very soon, the problems festered very much deeper than you thought to himself. Now, the heads of Government of the eurozone Member countries try desperately to look for solutions and suggestions for improvement. Particularly Italy, Spain and Greece are among the problems of the Monetary Union. But even Germany or France, the most stable economies in the Union, weakening rapidly. In the past week, a further euro Summit in Brussels should bring a little light in the dark, but the increasingly negative attitude of Britain did little conducive, to improve the situation in the euro area.

Already at the beginning of the year 2011 Jurg Zeltner, who is working as CEO at UBS wealth management, had to keep in mind given that is to be expected that decisions by Governments or central banks lead to trade and currency conflicts this year could. That the crisis would be however so massively, himself he has can not see. Now the rating agency threatens to standard & poor’s a number of eurozone countries, which were still considered relatively stable, with the downgrading of its credit rating. Among other things also France and Germany are among the countries concerned. As a reason, the increased insecurity and the inability of countries is called to deal with the debt crisis in the eurozone.

If a country in its credit rating is downgraded, so it is difficult to get to the capital markets on favourable terms of fresh money for this. But with the threat of downgrading of some countries, it is still not done. Meanwhile S & P has threatened more banks, also to minimize their creditworthiness. These include Deutsche Bank, Commerzbank, as well as many French banks. As the EU itself, including the European Investment Bank EIB, the objectives of the European Union by long-term financing is in the sights of credit rating agency promotes sustainable investment, as well as the Development Council of Europe Bank CEB, which promotes inter alia projects in education, environment and health with special-purpose loans. About a month it is now, that S & P the threats has pronounced, which means that the Agency will decide on the future of the creditworthiness of countries and institutions within the next 90 days. At the turn of the year, the situation has calmed down somewhat. The messages are no longer determined by bad news from the financial world and also by shocking news about State Bank rots, we were spared in the last few weeks. Pull up on United Kingdom all EU States together and can sprout in hope. Beginning of 2012 the markets are, that a stable, albeit will be not successful, new year. Anika Ganesh for OMR UK

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