AMP’s Head of Investment Strategy & Chief Economist, Dr Shane Oliver looks at the risk of a break-up in the Eurozone. Key points include:
- The risk of a break-up in the Eurozone peaked in May, and has been declining since European leaders have opted for ‘more Europe’ and the European Central Bank has committed to do whatever it takes to ensure the euro is irreversible.
- The Eurozone debt crisis is a long way from over, and it will be a long hard slog for Greece, Portugal, Ireland, Spain and Italy, but I suspect that we may have passed the worst of the financial panic associated with it. With the exception of Greece, which may yet leave one day, ultimately I see the Eurozone hanging together and becoming stronger, not weaker.
- With economic rationalist reforms being imposed across Europe, depressed European shares and assets are likely to be great value on a ten-year horizon.
Olivers Insights – Edition 32 (21 September 2012) – You do not have permission to view this object.