Euro Zone Crisis is Over, Or Is it?

The Euro Zone Crisis, Europe’s biggest problem since 2009 may or may not have been resolved as of yet. According to experts, the countries have only averted a single problem the euro zone crisis imposed. While the currency is finally stabilised and markets are slowly regaining speed, the risks are still present and countries still need to avert them.

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Swedish Finance Minister Anders Borg says that there is a clear divide between financial markets that believe the crisis is over. The governments and the real economy people are divided as to understanding if the euro zone crisis has finally been averted. He said that it would be dangerous to underestimate the crisis and it is important that all risks be averted as well.

Borg has been very critical about the euro zone’s handling of the single currency debt crisis since 2009.

Analysts said that the mood of the crisis for 2013 was more “relaxed”. A sense of urgency from countries emerged during 2012 when the crisis first emerged with everyone wanting to make a plan to save the euro.

IMF Chief Managing Director Christine Lagarde said that it was imperative that the United States, Japan and Europe continue to keep up their reform for economic reform at a steady pace. If the reforms and growth happen too fast it could easily cause a new financial disaster.

However, an anonymous senior European commercial banker said that the notion of the tail risk the euro zone crisis has is gone is a very dangerous notion.

Source: Reuters

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