Government Gross Debt as a % of GDP<\/strong><\/p>\n There are hopes that Greece might be a \u201csuccess story\u201d just like Portugal, Spain, Ireland, and Cyprus but the debt problems in Europe are far from solved. A huge debt in Greece and Italy will remain the lurking financial threat to Europe.<\/p>\n Net ECB Lending (Greece, Ireland, Italy, Portugal and Spain)<\/strong><\/p>\n Aside from debt problems, the European Union is also facing other key challenges:<\/p>\n Anti-austerity Government in Italy<\/strong><\/p>\n The debt problem in Italy has now turned into a political one. The rise in anti-austerity government is a political crisis that calls into question the survival and stability of the European Union and its shared currency. It shows that the Eurozone problems had not be laid to rest.<\/p>\n Brexit<\/strong><\/p>\n Brexit had elevated fears that other countries might follow the same step which is a crucial threat to the bloc. The recent elections within Europe had revealed a rise in European populist parties. This created a situation that feeds fears that all is not well in the Euro.<\/p>\n Trade Tensions<\/strong><\/p>\n The EU\u2019s divided union prevents the EU to act in unison to fight the US on trade-related matters. A wobbly European market due to the current trade risks coupled with geopolitical risks are constant threats for the common currency as European members with a fragile economy will suffer.<\/p>\n Investors are indecisive on whether to return which might explain Europe eagerness to paint Greece as a \u201ccomeback story\u201d. Greece\u2019s bailout coming to an end is good but it still has a long way to go. Debt problems in Europe remain a big threat and the political situation in Italy is an even bigger issue than Brexit.<\/strong><\/p>\n This article is written by a Wixad Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" After eight long years of crisis whereby Greece endured stringent budget austerity programs, the country\u2019s bailout will finally come to an end. Greece will therefore have to finance itself by borrowing on international bond markets. Before the bailout Greece was battling massive debt, loss of investment and huge unemployment. Nearly \u200e\u20ac300bn were provided in \u201cemergency […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4043],"tags":[],"class_list":["post-145654","post","type-post","status-publish","format-standard","hentry","category-geopolitical-events"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2018\/08\/Image-21-08-2018-1-1.png\")
\nSource: International Monetary Fund, World Economic Outlook<\/strong><\/p>\n![\"\"](\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2018\/08\/Image-21-08-2018-2-1.png\")
\nSource: Bloomberg Terminal<\/strong><\/p>\n