Fallout from the EU summit? Can the Euro survive?

After days of talks, the EU Summit failed to make clear whether the euro will survive the crisis. The only transparent outcome was that it changed the UK’s affiliation with Europe for the long term. David Cameron maintains that the decision to veto the changes to the Lisbon Treaty was to protect UK interests and especially protect the City of London from unwarranted intervention from Europe.

Dan Reed from HB Markets said, “The FTSE 100 fell by 0.82% today as the decisions in Europe have proved to be economically inadequate and politically troublesome. Domestically the decision to veto the treaty has revealed cracks within the coalition and within the EU it may squeeze the UK in the single market.”

Dan concludes “It could be difficult to defend the UK’s national interests if the UK is looking in from the outside. Overall details are still not apparent of what the instant tools would be to fight the crisis in Europe. In the days ahead the markets could face some uncertainty as the silver bullet that can sit behind any of the political decisions is still missing. Even if European leaders do overcome the political hurdles and agree on a resolution of the crisis, the question still remains if this will be enough to eventually curtail the continued contagion.”

www.hbmarkets.com.