Posts Tagged ‘Eurozone’

Interesting article from the Financial Times by Wolfgang Munchau. He points out that Ireland isn’t the biggest danger to the eurozone – instead it will be bailed out by the EU – instead, the biggest threat will be from Eastern European countries – such as Hungary.

Hungary is a strange one – most mortgages are in Swiss Francs , lent out by Austrian banks. Their total exposure to the eastern market amounts to 80 per cent of Austrian GDP – so if Hungary defaults, it won’t be Hungary thats affected – it will be Austria.

“A central and east European crisis is therefore a systemic event for the eurozone as well. One should not therefore treat this as someone else’s problem – because it is not.”


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