The Eurozone crisis and the potential impact in the event of a full scale sovereign debt default by one or more of the afflicted nations has continued to dominate the economic landscape in Europe. In a recent Deloitte CFO Survey, the crisis was highlighted as the CFO community’s greatest concern, affecting consumer and business confidence and limiting the pace of recovery from multiple years of stagnation and recession.
The continuing efforts by the European Central Bank to assuage the markets and build confidence within the political and economic communities have so far avoided the outbreak of an uncontrolled crisis. These actions should not, however, be interpreted as a sign that all is well. If anything, there is the danger that they have masked the underlying problems. The evolution of inflation levels, discrepancies in competitiveness, the wide fluctuation of key exchange rates, and a return to recession within the Eurozone economies are reason enough for the management of your holding company to consider the potential impact should events take a dramatic turn for the worst.
It is within this continually evolving context that business leaders must prepare contingency plans that both take into account a “worst case” scenario arising from a sovereign debt default together with an exit of one or more countries from the Eurozone, and at the same time deal with the accelerating slowdown in economic growth. These scenario analyses and plans entail a balanced assessment of commercial, tax and legal risk and opportunities in light of the diverging interests of holding companies and their subsidiaries. While CFOs included within our survey continue to cite cost reduction and increasing cash as priorities for their businesses, an increasing focus on driving profitable growth is a growing priority. May be it is also an opportunity to optimise your footprint across Europe?
The Deloitte Eurozone experts can prepare you for the uncertain future. We therefore have developed an Eurozone handbook to help you to cope with the strong Swiss Franc.
Here are some of the reasons to choose us as your advisor: