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A Brief Update on Previous Blog Post on the Eurozone

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 Further to my post on the failures of the European Union and its respective governments, I felt it worthwhile to briefly discuss the news from this week.
 The good news started with the ECB significantly expanding bailout procedures for eurozone countries struggling to raise funds from the market. Although it would be preferable for ECB funding to be utilised for the general eurozone economy as well as Government bonds, the recognition that previous guarantees were not enough is important. The ECB has finally recognised that it is always the lender of last resort for eurozone economies and is thus acting as a central bank on par with other central banks. This will reduce the urgency for governments such as the Greek Government to engage in austerity, although it naturally does not remove the requirement for structural changes to take place. In the process, it has also significantly reduced the immediate risk of Gree...

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1767286684

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