Could a weak euro bailout the European Union?
As the Euro comes under pressure on currency markets there may be some upside from this turmoil which the European Union is currently experiencing. Many experts believe that the Euro is still overvalued against currencies such as the dollar with some predicting parity in the short-term. As with the UK, where sterling has been weak, there is hope that a weaker Euro will improve exports from the European market and could eventually lead to a recovery in the euro zone economy.
After initially looking at steadying the ship with a bailout of the Greek financial crisis, the European Union has come under intense pressure from investors concerned about the cost of guaranteeing euro zone economies and how this would be funded. We've also seen a number of divisions starting to appear within the European Union with Germany and France, once great partners, now at loggerheads. Indeed there has been speculation that the French government threatened to withdraw from the Euro unless the German authorities gave their formal backing to the Greek bailout plan.
On the surface all appears well within Europe but underneath there are many power struggles and divisions which could come back to haunt Brussels.
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