China calls for Europe to put their “house in order”

The economic woes of Greece, Portugal and Ireland have spread to the much larger economies of Italy and Spain. China has quite rightly resisted requests to bail out these nations and has called for European countries to “put their “own houses in order” first. Quite right too –perhaps the UK should take note of this. 

Concerns continue over the stability of the Euro as the governments simply owe too much money and there is continued debate over how long Germany and France will continue to subsidise the weaker members of the EU. A Greek default is considered by many as inevitable despite reassuring statements from German Chancellor Angela Merkel. Whilst a Greek default will have significant repercussions for Europe, the growing concern over Italy is almost unthinkable. Italy’s economy is simply too large to fail and a default would surely mean the end of the Euro. It therefore comes as little surprise that the European Central Bank is attempting to prevent traders from shorting the Euro. Perhaps we can look forward to some cheap European holidays next summer.