In July 2012, the European Central Bank’s then-president Mario Draghi gave a speech that is now credited with saving the euro. “The ECB is ready to do whatever it takes to preserve the euro, and believe me, it will be enough,” he said at that time.
Greece was in the middle of a debt crisis, and economic instability was spreading to other parts of the euro zone. The ECB, the central bank for the countries that have adopted the euro, had to act.
Ten years later, the euro and the euro zone are still intact. But one of the core issues at the heart of the crisis still remains. In fact, it rears its head every time the region comes under economic pressure.
The crux of the problem in the euro zone is this, according to Angel Ubide from hedge-fund firm Citadel: “Two identical firms or households have differing financial conditions or funding conditions, just as a result of the country they are located in. So, in that sense, your passport becomes a major determinant of your funding conditions.”
“Of course, there should be differences, but when the differences are very big, and then we can say that monetary policy has been fragmented,” he added.
So, is the euro zone at risk of breaking apart? Watch the video to find out more.
#CNBC #Euro #Eurozone
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What a load of rubbish. Scotland will be joining the EURO. A Unified Ireland will be adopting the EURO. Wales will be joining the EURO.
EU and US will fck China and Russia!!!👹👹👹
Breaking just means you don't have to listen to other EU countries any more. You will be independent. Not bad actually. 🤔
What these egghead economists forget is that the people WANT the euro. Polls show support at over 80% in many countries. That will always trump the economics of it.
Since the euro was born I have read innumerable predictions that the European Union was going to collapse. It seems that there are many enemies of Europe wishing that to happen but it has never been fulfilled so far. My prediction is that the only sure thing is that within a few decades they will continue to say the same and the European Union will continue to exist. Nothing new.
It is so funny to see all these negative reports about the euro and the europeans in general how they probably cannot afford bread in the near future. So happy to live in berlin and not in the us somewhere where i would be worried so much more about the future. Will see.
this is the last Christmas Euro together.
It’s already fcuk’d. Deterioration is underway. The EuroDollar is tanking & there is nothing they can do about it…
The euro was a failure waiting to happen
I never thought that this will ever happen. But with the Brexit and then Meloni winning the election. Seems like that will happen soon
The UK has the highest taxes for 72 years and its still broke, that tells you something is drastically wrong and it cant go on the same way in the future. We are not the only Country in this mess the whole of the EU is in a worse position
Same currency with different fiscal policy is like one of your foot going to the left and the other one is going backwards while your body wants to go forward.
Currently the UK has a gdp of 98.2%
I think value of euro will start to climb again in about 10years. As a collectible.
Pls send more billions of euro to Ukraine.
Euro, according to US and UK, was supposed to end 10 years ago, the same as the world end.. This crisis will pass and euro will regain against dollar again
Euro is a Joke
I’m going comment about this video:
Everybody looking at this video please look at all of Paul Kazarian videos on Greece. He is the largest private investor in Greece’s debt.
1. Greece is the only country that reports their debt number in Future value. It isn’t 300 plus billion it is more like 72 billion.
2. Second, all Greece needs to do is hire a finance minister with an accounting background that can report numbers correctly.
3. Greece isn’t even in the top 5 in tax evasion in Europe so that isn’t the problem. Plus they work really hard.
4. Greece’s former ministers are going around telling everybody they are broke because they are trying to sell books their debt to gdp is below 100.
Americas countries need to create an American version of the eurozone
USA was planning this Russia played into this suckers
Euro is over….
When a banker or politician says believe me…..
Greece was a big mistake lol 😂 fir eurozone
Let's make dollar not as reserved currency and make UN coin pegged by all countries coins
The crazy part is that the country`s with most separatists are also the country's with the most unsustainable debt. And they all blame the Euro and the EU for their problems. It`s a bobble of narcissism at it`s worst. Reality is that a lot of the nations are not on a level of accountability that makes this system sustainable over time. There could be a new union with the northern European country`s . As far as i can see it would even be more rational to have a union with South Korea and Japan, rather than some of the southern European nations who are super corrupt and run by mafia.
Nations that are able to stay democratic, capitalistic, and respect the rule of law and so on should stick together and also have zero problems of doing so. Hungary, Greece, Italia, Poland are maybe better of on their own. Then they can stay accountable for their own problems instead of blaming others for the consequences' of their own toxic short term thinking politics ( Debt that they cant pay for).
Bravo USA👏🏽👏🏽 you’re slowly but surely destroying the EU exactly like you did back in WW1 & WW3….this is not gonna end well for everyone!
People who manage the europe union are dumps..
Every year people say the Euro is going to die. But it will stay around and the European peoples will remain united.
This video doesn't at all demonstrate that the euro is at risk of collapsing. Actually, once the war in Ukraine will be over, the euro will be seen as one of the strongest currency in the world.
EU would have been a world reserve currency bacus3 it is backed by so many countries, but no EU wants to pay second fiddle to USA and now they are paying for it. if and only they thought about other nations in africa and asia and started a EURO trade of oil EURO would have been strong. but EURO is now crap.
Thank you Russia, we can blame you for all this!
As a normal global citizen I just think giving central bank to print/regulate/control fiat currency potentially unrestricted (especially without it backed by limited/scarce commodity) is the root of why we progress so rapidly and our current plight.
It's currently not in any EZ member states' interests to pull the plug on the Euro, least of all the most indebted ones but this also applies to Germany.
Germany is, indirectly, giving them a free lunch and as long as it can afford to do so, is willing to do so and, perhaps most importantly, its population is either ignorant of this situation or happy to do so, then it will continue.
Ah the standard "euro is collapsing" narrative. Almost a full year since the last one
love the language they use in this video (quite obscure) specially the last sentence.
To be an enemy of America can be dangerous, but to be a friend is fatal from Henry kissinger
American bullshit. As if your 50 states do not have a widely different tax policy, or if Arkansas has the same economic make up as New York. The uro is here to stay. At the very least the European debt is in almost every state far below the US debt per capita and in relation to the GDP.
The Euro isn't going anywhere anytime soon despite the major debt issue. The U.S. Dollar is in no better position either than the Euro, but that's because the American Dollar is the world currency reserve and more of that currency can be printed to get itself out of a deeper hole which doesn't help either for the Dollar's value. It's really all an illusion. Sooner or later, every body is going to be tightening their belts even more except for the wealthy. The ones who own the biggest businesses and resources are ultimately the big winners. They have the controlling power. Europe and the U.S. have been selling out to other places for a very long time. No good, but whatcha gonna do?
Should be ok just so long as Germany, a global manufacturing and exporting behemoth, can re-source vital cheap energy supplies previously supplied by Russia.
Sian ho sii sua. Ka kin ah.
Nice film, but you can't have a serious discussion about the Euro failing without mentioning TARGET 2 imbalances.
Eurozone economy is al about waiting game on when will member nations stops feeding the failing economies of 'PIIGS' countries. One debt crisis to another. Lets see when the gravy train stops.