Fitch: European investors optimistic over eurozone crisis resolution

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A survey by Fitch Ratings has revealed European investors are “cautiously optimistic” for a resolution of the eurozone debt crisis.

The ratings agency found 86 per cent of respondents believed policy announcements, including the European Central Bank’s Outright Monetary Transactions and plans for a banking union, were major positive steps towards resolving the crisis.

However, 81 per cent of respondents thought “significant economic, financial and political risks remain” within the system.

“Fitch agrees these are positive steps that reduce the risk of a self-fulfilling liquidity crisis – or even a solvency crisis – derailing vulnerable sovereigns,” the agency reports.

“However, there was limited progress towards banking union at the October EU Summit. Lack of momentum could damage the credibility of policy makers’ efforts to solve the eurozone crisis and increase the eurozone’s vulnerability to market pressure.”

The agency has called for a “specific and time-bound roadmap” to boot credibility and answer outstanding questions.

The fourth quarter survey was conducted between 2 October and 6 November and represents the views of managers of an estimated $7.4trn.