Tuesday, May 8, 2012

20120508 1012 The Political Splintering of Europe by CME

Market Insights: The Political Splintering of Europe (Source: CME)
By Bluford Putnam - Mon May 07 16:01:00 CDT 2012 CT

Split Votes in Euro Block Countries May Destabilize Markets
All across Europe, from the north to the south, countries have made tremendous progress in cutting discretionary spending in their central government budgets. Many European countries, however, are in recession, and the automatic spending associated with social safety net programs has risen. There is a general realization that budget deficits will not decline meaningfully as a percent of GDP until economic growth resumes. Moreover, there are signs that voters are very unhappy with their current leadership and potentially seeking changes. France, Greece, Ireland, Italy and Germany are reviewed in terms of voter splits, and the possible ramifications.

Disclaimer. The research views expressed herein are those of the author and do not necessarily
represent the views of the CME Group or its affiliates. All examples in this presentation are hypothetical
interpretations of situations and are used for explanation purposes only. This report and the information
herein should not be considered investment advice or the results of actual market experience.

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