After 3 years old crisis appear to fade. European country has shifted to gain good reputation to politic with elections in several key nation set to change the balance of power in Euro. As the economy look to come back normal, there’s a debate over the German priority, versus policies aimed at boosting growth. It could decide the outcome of elections in Greece, France and Netherlands. It also effect on Portugal, Spain and Italy which are struggle to regain credibility in the bond market.
The uncertain political and economy outlook will make investors nervous that put European Central Bank (ECB) into pressure are to stabilize the financial markets.
As the politic not stabil, it show that the European crisis still not over. There also speculation that ECB could resume limited purchases of government debt under its controversial securities market program. Some analysts have also suggested that the ECB could move to full-blown quantitative easing to help boost the economy. it is a steps that would violate the ECB’s mandate to maintain price stability.
Source :- CNN