Wednesday

25th May 2016

Euro has weathered debt storm, Barroso says

  • Barroso: good news, but many investors still think Greece might go (Photo: consilium.europa.eu)

Business investors are confident the eurozone has weathered the worst of the sovereign debt crisis, according to European Commission chief Jose Manuel Barroso.

In a speech given to Portuguese diplomats in Lisbon on Thursday (3 January), the former Portuguese leader said that "the perception of risk in the eurozone has disappeared."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

He added: "Investors have understood that when European leaders commit themselves to doing everything to safeguard the integrity of the euro, they mean business."

His speech comes after Portugal earlier this week became the latest EU country to break ranks on economic policy.

Its president, Anibal Cavaco Silva in his New Year address condemned what he described as the "social injustice" of the country's bailout terms and promised a court enquiry on the subject.

For his part, Barroso acknowlegded that his native country is facing "a true ... social emergency."

Amid criticism that EU-mandated austerity has caused a spike in unemployment across the Union, he conceded that the commission is "willing to analyse the completion of programmes and to make adjustments and do the fine-tuning necessary to minimise social costs."

But Barroso's remarks reflect a growing belief among EU officials that market pressure on the single currency is starting to abate.

Last month, German finance minister Wolfgang Schauble also told reporters the euro has survived the worst of the crisis, following a buy-back deal on Greek bonds.

The optimistic tone was bolstered by a survey out this week.

A poll of 778 investors in December by research group Sentix showed that the business community by and large expects the single currency to stay alive.

One in four respondents said at least one country will leave the euro in 2013. But the figure this is down from one in three in November and from 73.3 percent in June 2012.

Greece remains the country deemed most likely to leave the 17-country curtecy bloc despite the buy-back scheme.

Over one fifth of respondents sill believe that it will leave the eurozone, while 10 percent of those surveyed said Cyprus is the second most likely to go.

But in a statement accompanying the poll, Sentix commented that "investors do not expect a sudden euro end for the above mentioned countries anymore."

Stakeholders' Highlights

  1. Swedish EnterprisesNew rules for posted workers - Better Protection or the End of Posting ?
  2. Innovators Under 35Meet MIT Technology Review's Innovators Under 35 Award Recipients from Belgium on 25 May, 6pm
  3. Open EuropeJoin the Brussels Brexit Debate on Wednesday, 25 May at 5:00 PM
  4. World VisionWhy The EU Needs to Put Children at the Centre of Emergencies - In Their Words
  5. ACCASustainability Reporting in Danger of Losing Its Momentum Says ACCA and CDSB
  6. CEDEC - Covenant of MayorsWebinar on 25 May - Electric Vehicles Development: The Role of Local Entities
  7. Dialogue PlatformDiversity as Heritage of Humanity! Join the “Colors of the World“ Show at the EP
  8. Centre Maurits CoppietersNew Responses to the Basque Peace Process? MEP Juaristi on Stateless Challenges Conference
  9. European Healthy Lifestyle AllianceImproving Cardiovascular Health Begins by Closing the Gap in Sex Disparities
  10. IPHRBrussels Talks to Take Stock of Human Rights in Turkmenistan
  11. World VisionCash-based Programming to Address Hunger in South Sudan:
  12. Belgrade Security ForumOpen Call for Applications! Join the Events Team at the 6th Belgrade Security Forum.

Latest News

  1. ECB warns that populist uprise is bad for business 
  2. EU states 'complicit' in Egypt repression
  3. Privacy whiz Max Schrems set to challenge other big firms
  4. 'Rude' ex-commissioner blanks MEPs' diesel probe
  5. EU and IMF agree debt relief for Greece
  6. Austria vote is wake-up call for EU left
  7. Poland vows solution to judicial crisis
  8. Terrorists likely stockpiling explosives in EU, says Europol