During the carnage, did you miss these two key reforms? – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that there have been two important reforms announced, one in the EU and other in the IMF, that many investors may have missed due to the carnage in the markets.

Key Quotes:

“While the economic challenges that Europe faces remain potent, the refugee problem appears more pressing. Tomorrow the flash January PMIs from the eurozone are expected to slip a little, but the composite will likely remain near the multi-year high matched in December. This suggests growth is steady.

The EU prides itself on its rules-based regime. One of the rules that makes it difficult to deal with the flood of refugees and asylum-seekers calls for the country of initial entry is responsible. Given where the refugees are fleeing, Italy and Greece are often the first country of entry but are ill-positioned to cope with expenses. Greece’s travails are well appreciated. Italy, which has kept its budget deficit at 3% of GDP or lower for the past three years, is under pressure from the EU to reduce its debt levels. Reports suggest that last year 850k asylum seekers flocked to Greece, and another …read more

Source:: FX Street