Today the European Union finance ministers recommenced their meeting, which started yesterday to discuss the strong apprehension brewing in regards to the proposed deal to restructure Greek private sector debt.
Inconclusive results from the talks yesterday probably initiated the downturn on the European stock markets. The UK’s FTSE 100 went down 0.6% this morning to 5,746 while the European equivalents lost almost 0.7%.
John Douthwaite CEO of SimplyStockbroking said, “Volatility in the markets will continue as long as a deal to reform Greek debt is not struck. Ministers have to come together and support the eurozone’s long term rescue plan. Today’s agenda at the EU meeting should put forward tighter economic governance.”
John concluded, “As fears of Greek default remain, sharp falls across the European markets will continue. This year the main priority should be to concentrate on rectifying problems caused in the past, or else Europe could simply fall back into a 1930’s style economic crisis. The enduring themes of the European debt crisis will continue to play a big part in influencing the value of the sterling in 2012.”
