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HiFX expects slow progress on eurozone crisis

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Efforts to achieve greater financial integration in the eurozone are unlikely to commence in earnest at an upcoming meeting of world leaders, experts have stated.

According to foreign exchange specialist HiFX, a lack of cohesion across the financial bloc has been flagged up as one of the key problems for member states.

The organisation noted that European Union leaders are gearing up to attend another meeting on the eurozone's economic crisis this week. However, it is sceptical that this will lead to any "significant agreements" on delivering further integration being reached.

Andy Scott, premier account manager at HiFX, commented: "The quickest solution is seen as plans to issue debt jointly through Eurobonds as opposed to individual nations all selling their own debt, preventing the problem of individual nations facing soaring borrowing costs."

He noted that Germany opposed this option, which he said was understandable considering the fact "investors have been paying them to buy their debt for certain maturities".

As a result, the country is reluctant to be hit with increased borrowing costs because other eurozone members have been profligate with their finances.

Nevertheless, Mr Scott said Germany will have to provide some support to fellow users of the single European currency in order to make the project a success.

He added that a bailout of Spain could represent the beginning of the end of the eurozone, which means the financial bloc can ill afford to have this summit conclude without a substantial agreement on resolving the crisis being reached.

Spain has already asked for financial aid from the European Union to support its beleaguered banking sector, while Cyprus is also looking to secure a bailout.

British prime minister David Cameron recently insisted that difficult decisions need to be taken by members of the eurozone in order to tackle the crisis. Speaking at the G20 summit, he said this is critical to the future success of the currency union.

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