For three weeks in a row, the promising European currency, which last week only fell to the dollar with 1.60% and below the price limit of $ 1.44 per euro, where it last moved the arrest of this year.

The euro came under selling pressure thanks to another major first, which in recent days saw the euro area. The yard in the club of four countries using the single currency was shaken again after the rating agency (Standard & Poor’s) lowered the rating of Greece, which is now the only member state of the euro area with a rating of not A.

The rating downturn was derived in the same way as the two-week Fitch agency, ie mainly by the negative trend in the development of public finances and the rapidly growing indebtedness, which could exceed 135% of GDP in two years.

Her decision was all the more surprising because only two weeks ago she officially announced that she would review the Czech rating. This will take several months, and so the rapid reduction of ratification aroused suspicion in a number of businessmen that the Hellenic Republic could be able to further reduce it in the first half of the five year.

In recent weeks, the Czech Republic has clearly become the weakest member of the euro area, as evidenced by the yield on government bonds. While the yield on ten-year German bonds reached 3.14%, in the case of the Czech Republic the yield rose to 5.68%.

The fact that the return from the Irish state securities, which were considered by investors to be a risky Czech at the beginning of the year, is the best account of the lone Czech in the position of the weakest link, thanks to the credible full performance of the Irish government to fight the crisis now reaches only 4.71%.

The current state of public finances and the forecast to fully prevent swelling budget deficits, therefore, lead to a growing fear of bankruptcy over the Czech Republic, which has a very negative impact on the entire euro area. If these fears cannot be dispelled soon, eck vld will be very prolonged in the fifth year in the issue of a bond worth more than 50 billion euros, which stt needs to dry dry in the middle, which would worsen its overall situation.

Although the Czech economy is less than ten times the German economy, these are the first fears of its bankruptcy, which is now most affected by the price of the European currency. No one knows exactly how the top representative of the countries using the euro would behave if one of the clubs really started to get into their shoes.

There are no procedures for dealing with these problems, and the ECB does not have a mandate to save the Member States, which the two in the common European currency certainly do not add. The bankruptcy of the Czech Republic could cause a dominant effect in the entire financial sector of the euro area, given that a number of European banks hold Czech bonds in their books.

The euro will once again be added to its Achilles heel, which is the disparity between the individual member states of the euro area. It is now more on the market, not at any time before 1999, and only then will it not disappear from the minds of traders in the near future.