The Euro Crisis and the European Motor Industry

The four most likely effects of the Euro Crisis are: 1. The ECB will become the forced buyer of EU sovereign debt. 2. It will have to choose between ‘printing money’ and allowing inflation or ‘belt tightening’ 3. If it chooses the first option, the EMU will remain intact. 4. If it chooses the second, weaker countries will be forced to leave the EMU. Vehicle makers and retailers face reduced demand in Europe as it faces the potential of a ‘double-dip’ recession.

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