Ensure you never miss an issue of the
real estate business bulletin
Euro problems remain a threat to Australia

Euro problems remain a threat to Australia

by Reporter 0 comments

Staff Reporter

The problems plaguing Europe show no signs of abating, which could have a negative impact on the Australian economy, ANZ chief executive Mike Smith has claimed.

During a speech in Sydney late last week, Mr Smith said “the problems in Europe are going to take many years to work through.”

"Despite the relative calm that has followed the Greek bailout, the basic problem still hasn't been resolved - which is, the economies of Greece, Portugal, Spain and Ireland simply aren't competitive while they are part of the Eurozone,'' he said.

While Australia remains fairly well shielded from any problems in Europe thanks to its strong ties to the Aisan markets, Mr Smith said another meltdown abroad would inevitably “shake Asia”.

But while Mr Smith believes the problems in Europe have only just begun, not everyone shares this thought.

AMP chief economist Shane Oliver told Real Estate Business' sister title The Adviser that the chance of another recession in Europe had been “substantially reduced”.

“It’s better than we expected, it turned out to only be a mild recession.”

Staff Reporter

The problems plaguing Europe show no signs of abating, which could have a negative impact on the Australian economy, ANZ chief executive Mike Smith has claimed.

During a speech in Sydney late last week, Mr Smith said “the problems in Europe are going to take many years to work through.”

"Despite the relative calm that has followed the Greek bailout, the basic problem still hasn't been resolved - which is, the economies of Greece, Portugal, Spain and Ireland simply aren't competitive while they are part of the Eurozone,'' he said.

While Australia remains fairly well shielded from any problems in Europe thanks to its strong ties to the Aisan markets, Mr Smith said another meltdown abroad would inevitably “shake Asia”.

But while Mr Smith believes the problems in Europe have only just begun, not everyone shares this thought.

AMP chief economist Shane Oliver told Real Estate Business' sister title The Adviser that the chance of another recession in Europe had been “substantially reduced”.

“It’s better than we expected, it turned out to only be a mild recession.”

Euro problems remain a threat to Australia
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?