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Spotlight Ideas managing director Stephen Pope weighs in on the state of the European economy.
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European markets not -- higher bully that are not as quick election polls point to support.
For staying in the eurozone but new worries for our markets as Egan Jones downgrade Spain's debt rating -- -- the managing director responded -- At London Matt Egan Jones downgraded just coming through not too long ago what do you make -- it did it surprise you at all that Spain is getting hit again with the not just.
No I think he's got surprises told that Spain is being put under pressure and having another level taken off his credit -- We are in a situation where unemployment is straightforward it's around 24%.
Move rolling over 50% for the youth unemployment.
-- prime minister keeps telling -- suspend does not need anybody that's assistance well.
And already quite shall war -- accusing not reason to -- it's.
-- because -- with yields -- -- six and a half percent -- cannot really afford to carry on raising money on the capital markets.
But didn't see that all of us really come on depends on Germany I mean if you look at what at what German bonds go far vs Spanish bonds -- -- -- about ilsley euros and right now.
What are the Germans gonna say enough on -- -- Merkel is facing reelection she's under pressure.
Doesn't that affect what happens with the economy there.
Most certainly she's worried about next September's election in September 2013 because she's lost some regional relations already.
And she knows that people in Germany since -- don't want to keep paying out bailout money.
However they do recognize that Jim has -- quite substantially from the export volumes his head into euros on.
I feel that Germany could carry on selling it's good for the not the Euro was there or not because.
People why Jim discuss in the quality not because they think rich people -- do discuss their quality products.
Who worry is slow if you start something I think Germany agree to your -- like socializing of European national debt.
Then the opposition policy the SPD in Germany can say well how about tuition -- bonds.
To try and say some of the states -- -- in Germany who are struggling themselves so.
Jim has a very tricky balancing act to perform via.
OK let me ask you about that being the no longer be health and the -- it's -- the elephant that's Greece.
There -- a -- times poll that came out it surveyed eurozone businesses consumers basically most even the Greeks and Europe.
Think that they would prefer to stay in the eurozone vs -- in the eurozone -- the euros on one grace that.
Well if you believe the politicians and bureaucrats we love the Greeks -- -- to stay.
Quite frankly I think enough is enough how much more money and time do we waste on summits that had nineteen already since this crisis began -- -- would have the twentieth.
How much more to they have to spend trying to -- the Greeks.
Either they decide to go again to -- policies that could form a coalition and it hits the terms of the bailout -- -- agreed in March.
-- they go with -- reason of this left wing group and they say no we're not going to do that either we'll stay you bias to stay.
All Greece has to -- -- merry way I think quite frankly if we could -- to spoil the Euro zone as it will be all right sixteen countries would be better off.
Stephen Pope is always gonna touchy about what's happening with the eurozone.
Crisis and of course the markets did thank yet.
