The International Monetary Fund has warned that the Eurozone crisis is far from over and called for more action to end the problems plaguing the troubled region.
The IMF went on to say that it wants greater progress to be made on repairing the balance sheets of the regions banks in an attempt for them to kick start lending. It also warns that the Eurozone’s austerity programmes being implemented across the region could eradicate up to 1.25% off annual growth this year and recommended that countries should slow down the cuts and instead focus on growth measures.
“Because policy space is limited, public debt ratios are very high (and still rising), and economic slack is already substantial, further negative shocks domestic or external shocks could severely impact growth. Within countries, labour market reforms should continue to remove rigidities, raise participation, and, where necessary, promote more flexible bargaining arrangements, “the IMF said.
Eurozone GDP is predicted to contract by as much as 0.6% this year before expanding by 0.9% in 2014.
The Euro strengthened against the Pound and US Dollar after data releases showed an improving picture in Spain and France. The President of France, Francois Hollande allayed investor jitters over a possible need for a bailout for Slovenia as well as declaring that the Eurozone’s recession is probably over.
Hollande said; “Indicators published in the last few days look as if we have reason to believe we have overcome the recession, but it is still fragile.”
Current Euro (EUR) Exchange Rates
As of 15:45 pm
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3225
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8637
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4392
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6436
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3627