As the severity of Europe’s sovereign debt crises become more apparent, its currency is weakening. A summit held on Thursday between Germany, France and Italy produced no further plan of action, though leaders say they are working to further Europe’s economic future. France argued for a stronger European Central Bank that can have more control over monetary policy, perhaps something akin to the Federal Reserve. Due to historical fears of inflation, Germany has opposed such changes.
What’s the Big Idea?
The Euro has traded surprisingly well against the dollar even as some EU countries have gone broke. Are the last few days, during which the Euro has declined in value, evidence of a larger trend or the results of speculation? Will Greece sink the continent? Will Italy be able to assert itself again now that the long-discredited Silvio Berlusconi has left office? Will Germany get its way again during the next round of economic talks scheduled over the next couple months? Will the Europe question be answered any time soon?