The Political Risks in Europe Are Too High
It's a great time to be an opposition in Europe. With sliding economic growth and unpopular bailouts, it's very easy to score points. And we all know that opposition leaders will say anything to get elected and that those in power will do anything to keep it.
The euro is slipping here, down 40 pips since the vote to 1.3636. It's not sliding because Slovakia may not ratify the EFSF changes (they will), it's falling because the vote will cost Slovakia's leaders their jobs.
Other leaders are watching and they don't want to be next. Approving further bailouts for the periphery is going to be hugely problematic and a persistent EUR headwind.
Originally posted at Forex Live.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Posted-In: euro zone global economicsGlobal Economics
