JPS Global Investments Newsletter Volume 6, Issue 2: The Quarter In Review
As we have seen many times before over the last couple of years, the news out of Europe cast a dark shadow over global markets, with sentiment turning tentatively positive yet again towards the end of the second quarter. Whether this time is different, time will tell. The core of the issue remains constant: Germany and its northern allies don’t want to write a blank check to periphery Europe without safeguards that involve ceding power over national budgets and banking oversight from national governments to EU institutions. Once these powers become European rather than national, Germany believes it will have greater leverage to enforce fiscal austerity and balanced budgets.