Today saw an escalation of the Euro crisis with Spanish banks reporting that over a billion Euro’s has been withdrawn by panicked Spaniards.
Mariano Rajoy the Spanish prime minister called for fellow European leaders to publicly back his country and boost its defenses from the threat of Greek contagion. Fears are growing that the Greek economy could collapse within days triggering a catastrophic reaction in Spain.
Mr Rajoy told state television there was “a serious risk we will not be able to borrow – or borrow at astronomical prices” unless they succeeded in bringing down the debt levels and regaining market confidence. “All these measures are needed to get out of the hole we find ourselves in,” he said.
He also fired a warning shot at Brussels after days of speculation about the break-up of the euro. “I would like a clear, strong message in defence of the euro project and an affirmation of the sustainability of the public debt of all the European countries that are subject to discussion at the moment,” he said.
Analysts are anticipating that Spain would “probably require some form of troika program in the course of the year.”
Amazingly despite all of the bad news coming out of Spain and Greece, Jose Manuel Barroso the President of the European Commission has declared at a conference in New York that the Eurozone is on the path to recovery.
He said; “We are on the right track, and I bring you a message of confidence. Beyond the so-called sound and fury we are making good progress in laying firm foundations for economic recovery and sustainable growth. The lessons of the financial crisis must be absorbed by all of us.
He also reaffirmed that he wants Greece to stay in the Eurozone:
“The striking lesson from this crisis is that we are all interdependent. In today’s world no country is an island, that’s why it’s critically important to avoid any form of protectionism.”
His views are unbelievable. The crisis is coming to a head and he speaks of confidence and progress. Such statements raise the question of, ‘what planet are these leaders on?’ Alarmingly it appears that certain leaders are so committed to the failing single currency that they have become delusional.
The Pound to Euro exchange rate is currently trading at 1.243
The Pound to US Dollar exchange rate is currently trading at 1.580
The Pound to Australian Dollar exchange rate is currently trading at 1.590
The Euro to US Dollar exchange rate is currently trading at 1.271
The Euro to Pound exchange rate is currently trading at 0.804
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