Europe's Temporary Economic Relief (Portfolio)

Stratfor Europe analyst Kristen Cooper explains why the rise of Europe's stock markets following the latest EU summit likely is temporary given the Continent's lingering economic troubles.
For more analysis, visit: http://www.Stratfor.com

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  News & Politics

[udical]

she is cute

[STRATFORvideo]

The analysts on-camera are part of the team that creates the analysis.

[gangstamillion]

Haha thats one solution 

[kowalityjesus]

if the us does the same thing, and we go to war to back our currencies, then wouldn't that be just as good as having a real economy? lol, jk, you're right

[gangstamillion]

At which point inflation goes through the roof and the Euro becomes worthless.

[Noss Cern]

Europe should consider federalising a variety of key economic functions as in this case, allow sovereigns to focus on providing services/defence - fiscal union or limits to sovereign actions requiring exclusion or punishment is not necessary. Sovereigns should be decoupled from broader economic activity and become service providers e determined by citizens of the respective country. EU trade and banking rules can slowly gravitate to simplicity and transparency maximising their democratic nature.

[kowalityjesus]

well at that point, they would call up the ECB and say "print all the money!" just like the US does...

[Srd1126]

she's no Reva Bhalla

[gangstamillion]

We've all seen this before about 50 times. EU summit called, deal reached, markets go up, deal doesn't work, markets go down, new summit called. Repeat until there is no money.

[John van Kampen]

How right you are, Kristen. This is a tragicomedy, a "soap" if you will, about leaders without realistic plans, catastrophic "solutions" and banks that keep on doing business as usual as if nothing happens and happened. Keep an eye on Spain though. PM Rajoy is quite well on course to improve the position of Spain without damaging the interests of his people too much.