SINCE my last column, Europe’s prodigal child ‘Greece’ has again been saved from the lions by Germany.
After flirting with the wealthier Eurozone countries and schmoozing in London with limited success, the country seems to be knocking on the door of the ECB again. The ‘Greek can’ is back on the road, but there is an unwillingness to kick it!
On top of this ugly truth, the ECB’s quantitative easing programme has kicked in, further weakening the euro. As of writing this, £1 is worth roughly €1.40.
The media are predicting a bumper holiday season for the Costas… San Miguel, famous Spanish brands, and the sunbed sellers of course, will be rubbing their hands with glee.
The UK economy seems tireless in its quest to be the shining recession-beating leader, and I think the big Eurozone countries are enjoying the beginnings of a recovery. The DAX, CAC and FTSE have echoed the positivity oozing into their economies – and let’s not forget the DOW and NASDAQ in America.
While Sterling is on a high, we have seen many expats securing exchange rates for the rest of the year with forward contracts. It could be a political headache for the incumbent government if the pound gets too strong, as it affects UK exports – and possibly tourism – and by association, jobs.
The political parties will be keeping a canny eye on this as Britain leads up to a general election. Currency is always a topic that get the publics attention… and I’m sure Farage will be puffing his chest out with talk of protecting the pound.
Once we have seen a few party political broadcasts and a few debates, some of the parties’ plans will be more apparent.
Luckily, for most British expats here in the sunshine, a strong pound translates to happy days!