A big win for the left wing anti austerity party Syriza in Greece raises questions about the future of the Euro and the EU itself. Saxo Bank’s Chief Economist Steen Jakobsen puts the result into a wider context, looks at immediate market reaction and the future for Europe.
Currency wars have already started and will be fuelled by the big win for the left-wing, anti-austerity party Syriza in Greece; according to Saxo Bank’s Chief Economist Steen Jakobsen, who gives us his reaction and thoughts about the future of the single currency and the EU.
As central banks around the world try to devalue currencies Steen argues that currency conflicts can only intensify. Weaker EU members like Italy and Spain will also be watching the Greek negotiations intensely to see how good a deal Greece can achieve, at the end of what looks set to be torturous political wrangling.
Steen puts the Greek result into a wider context, looks at immediate market reaction and the likely rush to gold.