Monday, November 29, 2010

Euroland La La La

Many said that the Euro couldn't work without debt union and fiscal union. The bond markets are pushing hard. The cracks are being patched over (Greece and Ireland), but if the euro is to survive debt union and fiscal union. Will the Irish and greeks accept the loss of fiscal sovereignty to the EU? In

Spain has to refinance it's debt and there are doubts as to whether the political will exists for the surplus countries (Germany, France and teh Netherlands) to take on the debt of their Southern neighbours.

If the eurozone breaks up and Spain goes back to the peseta at the level at which it joined.

166.386 Ptas = 1 Euro

Many analysts are predicting a drop in the value of the euro, meaning that property in Spain for those wishing to purchase will become cheaper.

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