Emu Country Analysis: Introduction

A SUPPLEMENT TO EUROMONEY Introduction ABN AMRO Markets anticipate a political decision on Emu Recent developments in the financial markets show there is widespread confidence that the single currency union will go ahead as scheduled with a larger than initially expected number of countries participating. In recent months, bond and currency traders have become increasingly […]

A SUPPLEMENT TO EUROMONEY

Introduction
ABN AMRO

Markets anticipate a political decision on Emu

Recent developments in the financial markets show there is widespread confidence that the single currency union will go ahead as scheduled with a larger than initially expected number of countries participating. In recent months, bond and currency traders have become increasingly upbeat about the prospects for a broad-based Emu in 1999, including weaker EU economies such as Spain and perhaps Italy. Markets have placed a substantial bet on these countries achieving their goal, encouraged by the prospect that, following the announcement of their 1997 budgets, both Italy and Spain could reduce their fiscal deficits to the 3% specified in the Maastricht Treaty.