ECB set to withdraw financial support
Many experts within the Eurozone believe that the European Central Bank (ECB) is attempting to pull away financial support for the likes of Greece, Ireland, Portugal and Spain at a pace which could push the European debt markets towards a premature tightening, the likes of which we saw back in 2008. Only this week we saw prominent members of the ECB stepping forward to confirm that financial support will be withdrawn in the short-term even though the situation regarding Ireland has heightened in concern over the last few days and Portugal, Greece and Spain are not yet out of the woods.
Many people have also pointed towards the fact that the ECB is going in a very different direction to that of US, UK and Japanese central banks which have all but given up hope of withdrawing financial support in the short-term. There is a chance that the ECB could upset the apple cart and potentially undo any good work carried out by US, UK and Japanese central banks in the short to medium term.
Whether or not ECB members agree to review their current strategy remains to be seen but investment markets within the Eurozone are becoming more and more concerned about a lack of composure and a potential lack of funding.
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