Risks in global financial markets caused by the situation in Europe  Global financial markets have been unstable since the beginning of this year, due partly to growing fiscal problems in some European countries and subsequent growing concern about the financial system.
As mentioned earlier, a structural factor – the use of a single currency – may lie at the root of the fiscal problems, and thus it is unlikely that there will be a quick resolution to the volatile situation in financial markets caused by the situation in Europe. 4.