Merkel Vs. Hollande

Merkel emerges victorious today over French President Hollande by turning over June’s EU decision to allow the ESM (European Stability Mechanism) to “break the link between banks and sovereigns”.

The EU (European Union) Summits has now officially concluded. The ESM was one of issues discussed and can now be used for directly recapitalizing hurting euro zone banks.

German Chancellor Angela Merkel and President Francois Hollande have been known to have their differences. The two power houses of Europe (France and Germany) have plans for the euro zone and tend to clash heads on a regularly basis.

Hollande summed up what is hopefully the intent of the whole EU: “But we all have our own public opinion. Our common responsibility is to put Europe’s interests first.”

Europe has approximately 700 million people living in it’s boundaries. If the EU leaders are more political than personal, they can forget the purpose of the power they possess. The purpose is to protect the people.

Overall, the EU summit could be deemed a disappointment for Forex traders, investors, and economists a like who were expecting Spain and Greek news.

The Euro has fallen the past two days and may continue as Spains aid request continues to be delayed.

At the EU summit , EU leaders agreed to the goal of establishing a euro zone bank supervisor by the upcoming year-end summit.

According to Spanish Prime minister Mariano Rajoy, said the summit made “significant progress” for the EU. As the facts are digested by the market, we may see a ranging euro in the coming weeks, balanced by possible summit decision implications on the good side and the Spanish delay on the bad side.

Read this for Boris Schlossberg’s thoughts on the Euro.

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