Stuart Thomson, chief market economist at Ignis Asset Management, explains how Europe's peripheral economies could plunge the eurozone into a new crisis.
This year, French President Francois Hollande declared the end of the European sovereign debt crisis. Meanwhile, the European Central Bank signalled that rates are on hold because it believes Europe’s prolonged recession is over. It also believes the economy will gradually recover over the remainder of the year and continue a gentle acceleration through 2014. Is President Hollande correct? Has Mario Draghi’s commitment to do “whatever it takes to save the euro” really eliminated the downside risk of holding peripheral sovereign debt? Has the resulting rally in spreads improved f...
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