The Euro is anticipated by the markets to strengthen today on an expected decision by the European Central Bank to buy-up the debt from the bond market in an effort to stabilise volatile interest payments by Greece, Spain and Portugal whose interest charges has been as high as 23% and 7% respectively.
Should this move materialise today it will give those beleaguered countries extra breathing space to introduce economic policies for job creation and limit the soaring costs of public spending on services: education, health and especially unemployment benefits and pensions. Which have already been cut back in Greece where pensioners are being forced to live on just a hundred euros a month. It is the unemployed and the most vunerable who are now paying the costs of wilful miss-management of the Mediterranean regions economies.
Should the ECB introduce a policy of buying debt today it will signal a stronger currency and longer term stability for debt laden EU country's. Perhaps Europe is heading for more integration and ultimately a Federal Europe led by Germany and France.
