Eurozone impact on the UK
Equities have registered a sharp decline following mounting
concerns over the eurozone. A possible referendum in Greece, the
rise in peripheral bond yields to unsustainable levels, the removal
of administrations in Italy, Greece and Spain plus technocrat-led
governments with a remit to impose strict austerity programmes have
all raised legitimate questions over the viability of the euro.
There is a growing sense that unless Germany sanctions aggressive
QE by the European Central Bank (ECB), the end game is fast
approaching.
The UK's veto of the EU treaty on 9 December had little
initial impact on UK markets. But the treaty itself will impose
more austerity on the eurozone, delaying the UK's recovery
further.
