Panic over the Euro in the corona crisis: No problems found

The economic crisis by means of Corona will be unique. But there is also good news: Italy goes bust, the Euro remains stable. Venice on the 10. March: It is a

Panic over the Euro in the corona crisis: No problems found

The economic crisis by means of Corona will be unique. But there is also good news: Italy goes bust, the Euro remains stable.

Venice on the 10. March: It is absurd to fear of Italy, Broke photo: Manuel Silvestri/reuters

The Corona-epidemic arouses many Fears – but fortunately, some of these are redundant. So, for a change, with good news to start: Italy will not go broke. It is true that there are many factories are at a standstill, the tourism dried up, and all the Restaurants had to close. The Italian public debt will increase, because the government needs to help in Rome, companies and banks through the corona of a crisis, in distress.

Nevertheless, it is absurd to fear a Bust in Italy. The country can service its debts easily, as long as interest rates are low. And the interest of the European decides Central Bank (ECB) has signalled this Thursday, that it is undogmatic decisions. If necessary, the ECB could buy up easy Italian government bonds to push down interest rates.

Absurd is also the concern that global financial investors could succumb to the thoughts, to speculate against the Euro. For where, pray tell, should make the investors their money alternatively? The whole world is looking for from the Coronavirus home. Particularly unattractive is likely to be in the Dollar to Dodge, because the USA have noticed much too late that you have to take the Corona epidemic seriously. The Euro will remain stable.

Little ominous is that the stock prices will fall and now back to the lowest level in four years arrived. The correction on the stock exchanges only burns financial assets, it was largely fictional.

More good news, there is not, unfortunately, at the Moment. The Corona epidemic caused an economic crisis that is unique in the history of capitalism. Never a pathogen has placed the global production of lame, which is for an export nation like Germany, a particularly large threat.

However, because the challenges are so great, you should not invent additional problems. A Bust in Italy, there will be as little as a too weak Euro.

Date Of Update: 12 March 2020, 20:00
NEXT NEWS