Currencies Direct

Currencies Direct

October 27, 2011 08:06 ET

The World's Eyes Turn to Europe as Italy Fails to Agree on New EU Measures

Currency Exchange Experts Currencies Direct Analyse the Feeling in the Eurozone Following Italy's Turbulent Week

LONDON, UNITED KINGDOM--(Marketwire - Oct. 27, 2011) - The stability of Italy's economy is being questioned this week following a tumultuous series of talks over the EU's stern debt reduction reforms.

Currencies Direct, the currency exchange experts who offer international money transfers, have highlighted that this instability is impacting the types and amounts of transfers made, especially to Italy as Berlusconi's shaky reputation continues to waver.

The tumult arises from responses by European governments to the EU's latest round of debt reforms – and it is having a negative impact on UK consumer confidence in buying property abroad.

These meetings taking place with the heads of Europe aim to solve the Eurozone economic dip which is threatening the stability of some of its biggest countries, including Spain and Italy who have been left battered and bruised by recent changes to their credit rating.

And the pressure is now mounting on Silvio Berlusconi's coalition government as it failed to agree on how best to tackle these tough new EU measures.

Measures suggested by the EU include raising the Italian age for drawing pension to 67, a policy which is considered unthinkable by many in the coalition, not least Italy's finance minister.

Rumours of postponed meetings caused a Euro sell off, before the single currency bounced back after it was confirmed that the meeting would go ahead as planned.

Analysts at Currencies Direct commented on the impacts of Europes instability on the exchange market by saying:

"Hopefully, all countries involved offer definitive answers on all three lines of attack: the EFSF, bank recapitalisations and Greek haircuts.

This would mean that the EU gets breathing space to address the more important problem of deeper fiscal integration – and a more stable currency will lead to more consumer confidence in buying and investing in properties abroad."

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