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The Future of Euro Still Faces Great Uncertainties

With the Greek election handing power to a pro-bailout party and EU leaders agreeing to directly extend 100 billion euros in bailout funds to Spanish banks, the eurozone has been granted some much needed respite. But a solution to the crisis remains elusive.

by Jan Techau

published by

China Radio International

on July 4, 2012

Source: China Radio International

With the Greek election handing power to a pro-bailout party and EU leaders agreeing to directly extend 100 billion euros in bailout funds to Spanish banks, the Eurozone has been granted some much needed respite. But a solution to the crisis remains elusive. Speaking on China Radio International, Carnegie's Jan Techau warned that Greece still faces the prospect of a Grexit and is in negotiations with the Troikt to ensure a steady flow of funds into the country. The EU has yet to establish a permanent contingency fund to channel funding to troubled nations and banks and an oversight system has yet to be established to monitor and discipline EU members' fiscal behavior. With so many things up in the air, the future of the euro still faces great uncertainties, Techau concluded.

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