The current scandal surrounding Spanish Prime Minister Mariano Rajoy will not disappear any time soon and investors should expect ongoing volatility, according to the European research team at one of the world's largest banks.
Matthew Boesler, Business Insider July 18, 2012 15:57
Germans have garnered plenty of economic benefit from the euro over the years as the common currency — fundamentally undervalued in Germany — allowed peripheral European nations to be able to purchase more German exports. However, a lot of Germans still have a special place for the old German Deutsche mark.
Joe Weisenthal, Business Insider June 11, 2012 13:33
Months ago, people across Europe were finally beginning to vocally question the German model of dealing with the debt crisis, which was: austerity + strict reforms. The reason people were questioning it was simple: It wasn't working. Not only were economies collapsing around the periphery, it wasn't accomplishing the official goal, which was to make the state solvent. Borrowing costs had only been shooting up. But in the months since, we've seen Sarkozy lose. We've seen the pro-bailout parties in Greece fail to form a coalition, and we've seen Merkel suffer more defeats in regional elections. So from a pure power standpoint, Merkel is the weakest she's been since the crisis began. A major eurobond coalition is forming among the French, Italian, and Spanish, as they all come for German money.