“To fireproof the euro zone, most everyone outside Germany thinks euro members should share responsibility for each other’s banks (via common deposit insurance) and sovereign debt (via Eurobonds). Germany has refused to countenance this,” The Economist points out.

German Chancellor Angela Merkel threw cold water on the idea of debt sharing in Europe, saying “under no circumstances” would she say yes to Eurobonds.

“The chief uncertainty surrounds the future of the euro, with Greek voters returning to the polls on June 17,” said JP Morgan Funds chief market strategist David Kelly in a weekly outlook Monday. [Greek ETF Eyes June Election]

“Added to these concerns are growing worries about the Spanish banking system. However, the basic problem is that, so far European leaders just don’t seem to get it – you cannot fix a deficit in a recession,” he wrote. “This being the case, the key question is whether Germany will be willing to halt short- term austerity for long enough to allow Europe to return to the growth path necessary for long-term fiscal solutions. Until we get this, Europe will continue to worry markets.” [ETF Performance Report: May Storms]

CurrencyShares Euro Trust (NYSEArca: FXE)

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