Leaves fall calmly from the tree

Written by Manfred Hübner | 29 September 2020
Posted in sentix Euro Break-up Index News

While the year 2020 will be anything but quiet and uneventful, this will not affect the stability of the euro zone. On the contrary, the corona crisis is currently masking important differences and even promoting one or two steps towards unification.

The sentix Euro Break-up Index remains at a very low level and at 5.4% at the end of September is only slightly above its all-time low, which was reached in November 2019. Investors therefore see only a small risk that the euro zone could break up. In the Corona crisis, the clocks are ticking differently and differences between the member states are currently being masked. The economic problems caused by the political measures to combat the pandemic are affect-ing all member states more or less in a similar way and are being contained by generous fiscal and monetary measures.

sentix Euro Break-up Index: Euroland Overall index and sub-index Italy

The largest political question mark from the point of view of the investors has not to do with the euro, but with the entire European Union, but it certainly concerns an exit. It concerns the “Brexit” negotiations, which are entering the home stretch and where no final solution is yet in sight. But even this is not an issue for the euro zone at the moment.