In every sense, this is Europe’s make or break quarter, Saxo Bank writes in its second quarterly insight for 2014. Pivotal European Parliamentary elections in May are likely to deliver a kick in the teeth for pro-European proponents. The very real possibility of EU sceptics making up the biggest bloc in the European Parliament ought to force a rethink on the whole experiment and, in particular, the fundamental flaws that run through the common currency.
Steen Jakobsen, Chief Economist and CIO for Saxo Bank, comments:
“The EU member countries have surprised with their political solidarity over the last few years of the EU crisis, but the electorate is growing restless and EU-sceptic parties are making huge inroads that the establishment must recognise. Beside this we have the eternal problem that the EU entirely lacks an economic foundation that is sound and long term. Here in early 2014, EU complacency has never been higher, just as real political and popular entropy is about to make its presence felt.”
However it unfolds, Europe will pay a price. The only imponderable is how profound that price may be.
Find out more in our Q2 Insights Quarterly Outlook.