Euro Breakup Prospects Rattle Investors Once Again


With hotly contested general elections coming up in France, Germany, and Holland — where yet another upset could be on the cards — 2017 was always going to be a nail-biter for the Eurozone… And investors’ nerves are fraying. The spread between the 10-year yields of French government debt and German government debt has already widened from 0.28% in October to 0.81% today in anticipation of French elections, to be held in April.

five years [from Draghi’s pledge to “do whatever it takes”, most of the Eurozone’s existential problems remain unresolved, despite the ECB having frittered €3.7 trillion (or roughly 36% of Eurozone GDP) on keeping the leaking ship — and the region’s biggest banks — afloat.

Mark Blyth, a professor of political economy in the U.S. who was one of very few academics who correctly guessed three of the biggest political shocks of 2017, Brexit, Trumpism and the no-vote in Italy’s constitutional referendum, has warned that 2017 could even be the year that the euro ceases to exist…