Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Eurozone failure and the Spanish property market. › Re: Re: Eurozone failure and the Spanish property market.
To follow on from some well-argued comments, I believe if the Euro survives the next two years, it could well stay and become the world’s reserve currency instead of the increasingly shaky US Dollar. But the next year especially will be the make-or-break time for the Euro.
The bail-outs which have already taken place are being challenged in the German Constitutional courts, the highest in the land. Local elections in Germany due next year could well bring down the Conservative/Liberal coalition, and if Cable and Huhne get together the same thing could happen in the UK.
Spain seems to be the referee in the Eurozone, they are too big to be allowed to fail, but also too big to be rescued. The stability pact is not due to take effect until 2013, three long years away, and anything can happen in the meantime.
Nobody has really mentioned France much in the context of the Eurozone’s problems, but it’s also one of the bigger players and completely unpredictable, in my view. The country’s people were the first to embrace the industrial revolution, and went to extremes in guillotining their leaders in full public view.
They are always the first to take to the streets in present-day Europe too, and if they fall out with their mighty German neighbours, that will mean the end of the Euro too.
The clock is ticking and my twelve grapes are in the fridge, waiting for me.