Throughout
2011, German chancellor Angela Merkel has stood firm in not permitting the Eurozone
central bank to pool and monetize the European debt.
Although this has proved Merkel to have a strong backbone as well as be a good strategic
leader it has done nothing to help the EU dept crisis. In 2012, this could
change with many believing that Merkel may relax her policy.
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| Will she crack? |
If Merkel
were to relax her policy the European central bank would be able to flood the
market with newly minted euro’s which would help to decrease the cost of the
sovereign debt of all the Eurozone countries. This in turn should hopefully
lead to a rally in equities and commodities and cause an upturn for both the
European and UK economy.
Although,
Merkel maintains her stance that she will not allow the European central bank
to monetise the dept crisis, I personally believe that she will crack. If this
happens the EU should find itself in a far stronger position by this time next
year.
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