A 10-day losing streak for the euro against the U.S. dollar is rekindling an old debate: Will the single currency reach parity with the dollar?
Read the Full Article: Source – Wall Street JournalRead More
Time For Truth: (Wall Street Journal) – Euro, Dollar Flirt With Parity
The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.
“One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.
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Time For Truth: (The Telegraph) – Euro 'house of cards' to collapse, warns ECB prophet
Finland’s parliament will debate next year whether to quit the euro, a senior parliamentary official said on Monday, in a move unlikely to end membership of the single currency but which highlights Finns’ dissatisfaction with their country’s economic performance.
The decision follows a citizens’ petition which has raised the necessary 50,000 signatures under Finnish rules to force such a debate, probably the first such initiative in any country of the 19-member euro zone.
Here’s a nice little map, drawn from the IMF’s latest World Economic Outlook, to warm the cockles of any eurosceptic’s heart. According to IMF forecasts for 2013, virtually the entire eurozone is either in outright recession or showing growth of less than 1pc.
The eurozone has slumped into its longest recession ever, after economic activity across the region fell for the sixth quarter in a row.
Economic output across the single currency area fell by 0.2% in the first three months of 2013, statistics body Eurostat reported on Wednesday. France, Spain, Italy and the Netherlands all saw their economies shrink as the economic crisis in the eurozone continued to hit its largest economies.