Market Overview

EU Fringe Politics Likely To Be A Theme In 2014

EU Fringe Politics Likely To Be A Theme In 2014
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The euro looked poised to end the week on a high note and traded at $1.3763 at 6:15 GMT on Friday morning. The common currency has been strong in recent weeks as strong economic data has shown that the bloc has turned a corner towards recovery from its financial crisis.

However, as member states attempt to rebalance their economies and cut down on sovereign bank debt, their citizens are becoming increasingly unhappy. Tough austerity cuts coupled with sky high unemployment rates has created a sense of disillusion among Europeans, which some analysts believe could come to a head in 2014.

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CNBC reported that France is likely to experience a lot of push back from its people as it tries to restructure its floundering economy in 2014. While the rest of the eurozone has been posting encouraging data, France's figures have been concerning. On Tuesday the INSEE National Statistics showed that gross domestic product for France was only 0.1 percent in the third quarter.

Next year, President Francois Hollande could be forced to make large scale changes in France in order to promote European integration and comply with the parameters of the region's new banking union. The changes will likely be unpopular among the French, and many expect to see a surge of anti-European political parties in 2014.

While the banking union and calls for closer integration between member states have been praised as necessary steps in order to prevent another financial crisis, fringe political parties have been on the rise as Europeans become increasingly resistant. With the banking union set to come into effect in 2014, radical political parties will likely be a fixture across the eurozone next year.

Posted-In: News Eurozone Commodities Forex Global Federal Reserve Pre-Market Outlook Markets Best of Benzinga


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