Eurozone Economy

Here at Money Morning, we cover the section of the Eurozone Economy regularly.

In the everchanging and dramatic environment of the EU, it’s important to keep an eye on the latest news and updates that may create waves for us Aussies back home…

Luckily for you, we do all the hard work, searching for the latest and delivering it to you here.

As you may already know, the Eurozone includes 19 countries that have fully incorporated the euro as their national currency — Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

It’s one of the largest economic regions in the world.

The EU, as we know it, was created in 1992, with the signing of the Maastricht Treaty by all countries making up the European Community (EC).

The purpose of the EU was to create a unified economic and monetary union with a central banking system (the European Central Bank — ECB) and a single common currency…

The euro.

To this day, the euro is one of the most liquid currencies and holds a prominent position in the reserves of many central banks.

And the EU not only created a unified currency, but created significant change to citizenship, security and defence policy, as well as economic policy.

But it hasn’t been easy sailing since 1992 — there are a few holes in the Eurozone.

You would be well aware by now of the number of significant changes the EU has experienced, most notably Britain’s referendum decision two years ago.

With the ongoing issues of the immigration crisis, a growing distrust of multinational financial, trade and defence organisations — the pressing issues that the EU failed to solve — Britain decided to claim their sovereignty.

The EU is not a nationalistic power — it attempts to retain nationality as a cultural right, and yet it deprives individual nations of the power to make crucial decisions.

But soon, Britain may not be the only ones to up and leave the Eurozone…

What happens next could create a ripple effect of consequences for Australia and your overseas investments.

Read on for the latest news and updates regarding the Eurozone economy.

Is a GFC 2.0 on the Horizon?

Central banks around the world used stimulus packages to boost their economies and in Australia, it also kept us out of a recession. For this to work, countries had to spend money, which has led to debt.

The Shambles of Brexit

As we all know the British public say ‘YES’ to Brexit. This result shocked a lot of people. Actually it really just shocked middle and upper class people from London. Everyone else in the country was sick of being the EU’s whipping boy and they wanted their Britain back.

When a Country Dies a Crypto Boom Is Born

If crisis hits again, people will flee the traditional system. They'll realise the current system isn’t as safe as they think. They’ll want something else. And crypto will be there, ready, waiting for them.

Reality Bites

Investors have retreated from European stocks after seeing political upheaval in Italy. The euro is once again facing an existential threat. What does this mean for world markets?

The Tipping Point

The US dollar rally has barely paused for breath since getting underway in February. Late last week, it took its toll on commodities. Oil fell nearly 3%. Iron ore fell 3.7%, while aluminium declined 0.7%. What will happen next?

Bitcoin’s Race to Wall Street

Bitcoin for the masses... It’s a tantalising prospect for the crypto community at large. Whether you already own bitcoin or want to get involved, the latest rumblings from Wall Street should be good news.

How to Find the ASX’s Best Small-Cap Stocks

No company pays us to cover a stock. We don’t puff a stock to generate higher fees. The mainstream research game is full of conflict, influence and bias. And no other major financial institution provides the level of insight into small-cap ASX listed stocks like we do.

This Chart Suggests Aussies Have Their Wallets Open

Companies such as Qantas Airways Ltd [ASX:QAN] and Webjet Ltd [ASX:WEB], are trading around all time highs. When we relate that with what’s happening with US leisure stocks, and European luxury goods, the question you then ask yourself is, does any of this suggest an imminent recession?
Money Morning Australia