Europe faces an unprecedented crisis. Who will be next?

Europe has had, from the economic point of view, a horrible year, with plans to save Greece and Ireland, followed by a cortege of austerity plans, the euro area are obliged to adopt serious reforms in order to survive.

“If the euro fails, Europe will fail,” German Chancellor Angela Merkel summed. Since 2008, the crisis was in fact continuous.

First, banking and financial crisis was imported from the United States after the bankruptcy of Lehman Brothers, followed by the worst recession since 1945.
Then, the crisis turned into a social budget and under the effect of worsening budget deficits and debt, which requires passing the rigorous policies.

Austerity is particularly pronounced in Greece, who passed bankruptcy, and Ireland, with a reduction of benefits, salaries of civil servants and increase taxes.

Austerity measures is the price of aid from the European Union and the IMF, to 110 billion euros for Greece and 85 billion euros for Ireland.

Waiting could be Portugal and Spain, also located in the markets attention. For Europe, tormented by the feeling of decline from emerging powers, awakening to reality is tough. It’s not about Mexico, Argentina and India who are saved but even the IMF itself.

How they got in this situation? One reason is to support banks with public money, pressuring the state budgets.

Short URL:

Posted by P.Jeanelle on Dec 13 2010. Filed under Europe, Featured News, Finance, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Premium WordPress Themes

More News

Wp Advanced Newspaper WordPress Themes Gabfire