Will France exit the euro?

14 February, 2017

Will France exit the euro?

The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency.

At 6.15pm (GMT) the euro was trading at $1.0600 down from $1.0637 in yesterday’s trading.

National Front leader and presidential candidate Marine Le Pen, claims that the Euro is just a political instrument and her country would be better off with a different currency all together.

She also added that some of her proposed policies are unattainable as long as France continues with the Euro,

“I can’t implement my promises of intelligent protectionism and industrial policy with the single currency,” Le Pen said.

“It’s a brake on the economy, it’s an obstacle to the recovery. The euro isn’t a currency, it’s a political tool.” she added.

Banque de France governor Francois Villeroy de Galhau said that the consequences of France exiting the Euro would be huge, and greatly increase the cost of borrowing which he claims is already  happening over a possible break with the Euro,

“The recent increase in French rates ,which I believe is temporary corresponds to a certain worry about the exit from the euro, If we were alone, we would be helpless faced with financial market speculation and helpless faced with US pressure on the dollar," he said,

"Financing France's public debt would cost over 30 billion euros $31 billion a year .That might seem a bit abstract to listeners, but 30 billion euros, to be very concrete, is equivalent to France’s annual defense budget,” he added.


Source link  
Gold awaits US employment data

The gold price is under further pressure today after being hammered over the last week and as we mentioned yesterday, any sustained break down...

Gold ready for breakout to the upside

The gold price has certainly behaved strangely this week, failing to react to news which would usually send the precious metal considerably higher...

Pound set to rally

The British pound continues to rise today against its US counterpart after rumors surfaced yesterday that the UK has reached a settlement to leave the European union...


Gold awaits news on tax reform

The gold price is making another run for the $1,300 mark in today’s trading session on the back of US dollar weakness and as the market...

Gold takes a breather, comeback predicted

The gold price has drifted slightly lower for the 2nd day in a row on the back of profit taking as the US as the US celebrates thanks giving...

Gold looks to tax reforms

The gold price is slightly lower in today’s European trading session although it is still hovering around 1 month highs as fears grow that US President...


Gold set to go higher

The gold price has moved significantly higher over the last 4 trading sessions on the back of US president Donald Trump’s trip to Asia as well as political turmoil for the president back home...

Euro set to weaken further

The Euro is under further pressure today against its US counterpart after suffering heavy losses on Friday on the back of strong data from the US...

Gold awaits next Fed chair

The gold price is heading for a 2nd day of gains as the market awaits US president Donald Trump’s choice for the next candidate to run the US Federal...

  


Share: