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Friday, 16 December 2011

Euro bail-out facility acknowledges risks of Euro ceasing

In working to protect the Euro with financial instruments to insure troubled countries against default, the European Financial Stability Facility (EFSF) has explicitly identified the risk that the Euro could break up, or cease to be lawful, according to the Financial Times.

The warning further erodes confidence in the Euro, and it reflects the reality that Greece might leave the Euro, or that the Euro might be restructured in some other way.  Full risk disclosure in a sense undermines the objective of the EFSF, which is to restore confidence in the Euro itself.  The EFSF report is only in draft form.  I acknowledge this Financial Times' report.

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