Sunday, March 31, 2013

Barclays — The Seven Broken Taboos Of The Cyprus Deal

The euro’s core founding principles, based on the Maastricht Treaty’s “irrevocable” fixing of currency rates, and of the free movement of capital, have been violated. The euro will never be the same again; its preservation now depends urgently upon economic recovery. Without the delivery of economic growth, unemployment will rise to yet higher post-war record levels, and the widespread and growing disillusionment felt by EU citizens towards their economic regime will threaten to spill over into more explicit questioning of the euro’s suitability.
Zero Hedge
The Seven Broken Taboos Of The Cyprus Deal

Just a matter of time now for the euro? Will Cyprus turn out to be Creditanstalt redux? 


Matt Franko said...

Wray: as long as taxes are seriously enforced/collected in Euros, the currency will have value...


Unknown said...

Yes, taxes drive the value of the Euro but individual governments in the Eurozone are probably questioning why they should continue to drive the value of a currency that they have no control over.