img3Finance is dynamic category, and for the owner of funds it is highly desirable that this dynamics was positive. Simply said, the money should “work”, otherwise their value in terms of permanent inflation (even if small) would steadily fall.

The fact that investment is one of the best ways to “employ” the capital hardly needs further explanation. Especially that there are numerous opportunities for investing money, and public investment in Europe is one of these options.

INVESTMENTS IN GOVERNMENT BONDS OF EU COUNTRIES: IS IT WORTH IT?

There are, perhaps, no inveterate skeptics who believe the government securities market of the EU countries is a spring-board unfit for investment: you can select the objective reasons for which the public investment in Europe is attractive to owners of capital.

  • General market conditions. Once in the mid 90-s of the last century the world economic space in unison took the course of liberalization, the liquidity of European securities markets (and government, of course, included) has increased significantly. Increasing integration of the world economy logically entailed expanding opportunities for government borrowing, which, consequently, led to an increase in profitability of European government liabilities – so noticeable that some of them have become more attractive to investors than bank deposits.
  • Political, economic and social situation in modern Europe. Creation of a single, in essence, economic space in Western Europe led to immanent growth of capital mobility in the EU. European stock market these days is becoming more transparent, tends to unification, which can not be an additional argument in favor of public investment for owners of capital.

Speaking of public investment in Europe, it is impossible to ignore the pragmatic aspect: modern European Union needs a cash infusion, is interested in it, and therefore ready to provide preferences and privileges to those wishing to make these additional infusions. Opportunity to obtain permanent residence in a number of EU countries in exchange for a certain amount to government liabilities of the host country is just one of those “steps forward”. With all temptations of this perspective it can also give cause for reflection and even suspicion, as all that is driven by increased interest.

In any case, the final decision on viability to invest funds into government liabilities of the EU countries remains with the owner of the capital, as it is ultimately determined by the ratio of the necessary expenditures and potential effectiveness.

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