We all heard about the Greek crisis. Greece has an enormous budget deficit and the recession is still getting worse. Moreover the inflexibility of the euro lies at the heart of the crisis. Not only Greece suffers, the troubles in Greece threaten the complete euro zone.
The alarming figures from Greece and the worrying statistics from some other European countries like Italy and Germany will undoubtedly hinder the recovery of the euro zone. The euro has already decreased strongly in value. The question is; what is Greece doing about its troubles? The government has announced austerity measures including a rise in the pension age, a net public sector pay freeze, a crackdown on tax evasion and tax rises on fuel, tobacco, alcohol and property. Anyway, the European Union doubts that the measures aren’t going far enough.
Above, critics say that the lack of discipline isn’t the main source of Europe’s troubles, not even in Greece, whose government was indeed irresponsible. The real truth behind the euro mess is Europe who thought that Europe was ready for a single currency. Long before the euro came, economists warned the reverse. But these warnings were ignored, and the crisis came.
However, a breakup of the euro is very unthinkable. So the only way out is forward. Europe must not exaggerate the problem. At global level, the Greek economy has nothing to do. Greece is only a small country with a small economy, with a gross national product (GNP) less than 3 percent of the total GDP in the European Union. Personally, I think that we have to wait patiently and have a little confidence. Whole Europe suffers from the financial crisis. So every country have to take care off its own troubles, but they also had to take care of the other European countries. The recovery will take many time, but it will getting better.
http://business.timesonline.co.uk/tol/business/economics/article7025618.ece
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