There are many lessons to be learned from the Cyprus bailout, and plenty of implications for how things may develop in the future. We list 25 here, but there are more.
Lesson 1: Do not underestimate the ability of the eurozone to do the right thing – after all the alternatives are exhausted;
Lesson 2: Eleventh hour deals can often lead to mistakes and have unintended consequences. The decision to haircut depositors under EUR 100k was a pothole the Troika fell into. It questioned the integrity of the EUR 100k deposit guarantee;
Lesson 3: The disappearance of Mario Monti from the scene has reduced the influence the South has on decisions about the future of the euro; Continue reading “25 Lessons from CYPRUS”
Three months ago, Yanis Varoufakis explained Europe’s bogus growth pact and the papering over the cracks that was being done by the IMF and ECB, “The idea here is that, yet again, the Eurogroup-ECB-IMF alliance is not ready, politically, to reveal the truth to its various constituencies.” He was, obviously, correct. This weekend, in a brief BBC Radio interview (below), as Cyprus erupts and brings the European circus back into town, Varoufakis exclaims, “every bailout agreement, beginning with Greece’s in May 2010, seems less logical and more toxic than the previous one.”
In three minutes, the Greek economist illustrates how the leaders are laying waste to the supposed pillars upon which the European Union was founded. Continue reading “Cyprus is the Homage”
I always like to be bullish on things but you cannot avoid he ground realities and say bullish. The Europe’s politicians join a chorus of policy-makers across the globe pushing for devaluations to fight for market share we can expect currency conflicts.
The telegraph reported – “Jean-Claude Juncker, EuroGroup chief, has signaled that Europe is no longer willing to be the last economic player holding the toxic parcel of an over-valued exchange rate, describing the euro as “dangerously high” after its three-month surge against the dollar, yuan and yen. Continue reading “The Currency war is on”
The more you read and write on this topic, the more you explore every time. Grexit? Spexit? and many more terminologies to hear as the crisis deepens. I did more than a dozen post where the recent one covers the EU submit and the Euro 2012 soccer cup Euro and European champions.
The aftermath to last weeks EU summit has certainly proved to be a damn sight more perplexing than the actual summit itself. Contrary to earlier experiences, Continue reading “Euro Crisis: Grexit Now the Spexit”