Greece Still Near-Term Risk For Euro |
| Wall Street Journal - Nov 7, 2011 |
The euro is in for another week of being at the mercy of headlines out of Greece, just days after the ink had dried on a sweeping accord meant to reduce the threat posed by the country's financial problems.
In the wake of an unexpected decision last week to put Greece's bailout terms to a national vote, Prime Minister George Papandreou survived a weekend confidence vote. But the road ahead is still fraught with uncertainty for the euro. With Papandreou expected to resign, analysts are uncertain about who will replace him in a new unity government, which may delay parliamentary approval of key reforms imposed upon Greece by the European Union and the International Monetary Fund.
In the wake of Papandreou's call for a referendum on its recently negotiated bailout agreement, the euro fell to a near three-week low at $1.3608. But Greece is far from being the only source of uncertainty in the euro zone: political turmoil and fiscal woes are buffeting Italy, where sources are saying that Prime Minister Silvio Berlusconi is talking to his family about the prospects of him resigning.
So, after the wrenching market volatility that led analysts to question whether Greece may pull itself out of the 17-nation currency bloc, this week looks like it may be subject to the same. Already, Italian bond yields are trading Monday at new euro zone-era highs. That's setting the euro up for the same sort of swings this week.
Read Full Article from Wall Street Journal
- Posted: 2011-11-07 08:43:18
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
