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Moment Of Truth For The Eurozone Is Approaching

April 14th, 2020 · No Comments

  • With economies everywhere in a self-induced coma and rescue bazookas getting ever bigger, the effect on public finances is going to be epic.
  • This is going to be difficult anywhere and require debt monetization on a large scale, with uncertain consequences.
  • But some of the worst-hit countries like Italy, as members of a currency union, are not masters of their own monetary affairs, greatly complicating the way forward.
  • A moment of truth is approaching where either some form of debt mutualization is introduced or the ECB is allowed to backstop insolvent countries.
  • The alternative is a break-up of the eurozone. Before the year is over, the Germans will have to make a choice.

Source: Moment Of Truth For The Eurozone Is Approaching | Seeking Alpha

Tags: Eurocrisis