Friday

9th Dec 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."

EU public lacks voice on banking laws

The complexity of financial laws and lack of NGO resources means the “man in the street” has little say on EU banking regulation, the EU Commission has warned.

Stakeholders' Highlights

  1. Swedish EnterprisesMEPs and Business Representatives Debated on the Future of the EU at the Winter Mingle
  2. ACCASets Out Fifty Key Factors in the Public Sector Accountants Need to Prepare for
  3. UNICEFSchool “as Vital as Food and Medicine” for Children Caught up in Conflict
  4. European Jewish CongressEJC President Breathes Sigh of Relief Over Result of Austrian Presidential Election
  5. CESICongress Re-elects Klaus Heeger & Romain Wolff as Secretary General & President
  6. European Gaming & Betting AssociationAustrian Association for Betting and Gambling Joins EGBA
  7. ACCAWomen of Europe Awards: Celebrating the Women who are Building Europe
  8. European Heart NetworkWhat About our Kids? Protect Children From Unhealthy Food and Drink Marketing
  9. ECR GroupRestoring Trust and Confidence in the European Parliament
  10. UNICEFChild Rights Agencies Call on EU to put Refugee and Migrant Children First
  11. MIRAIA New Vision on Clean Tech: Balancing Energy Efficiency, Climate Change and Costs
  12. World VisionChildren Cannot Wait! 7 Priority Actions to Protect all Refugee and Migrant Children

Latest News

  1. No joke: Russian propaganda poses EU threat
  2. ECB reshapes its bond-buying scheme
  3. Digital content directive threatens app development sector
  4. EU says Greece fit to take back migrants
  5. MEPs back plan to 'revitalise' complex financial products
  6. EU offers Denmark backdoor to Europol
  7. EU nationals fighting for IS drop by half
  8. EU targets Germany and UK for not fining VW's emissions fraud