Was the Euro ever in trouble?

My incorrect prediction last year was that Italian bond yields would spike or someone would leave the Euro. I was wrong. Interest rates did get pretty scary.  There was plenty of talk about Greece leaving the Euro.

But it didn’t happen.

How memories fade. Already, there are stories and quotes trying to downplay the very precarious position that existed for a time last year:

The euro as a currency has never been put in question

That was from former ECB chairman, Jean-Claude Trichet.  Interesting that it was actually with his departure and new, rule-bending antics by the ECB to virtually finance sovereign EU nations in the face of founding charters that they must not, that interest rates came under control.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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