Yigit AKATA
Financial Slowdown and Crisis in Europe, Greece
The world has faced new economic crisis which has a deep impact on Europe and its relators. Chiefly Greece and Europe has been struggled he harmful effects of economic crisis nowadays. European Union started to contend with massive difficulties and trying to find new sources to survive the biggest and effectice financial crisis. Besides there is a question in the mind of many authorities; the saving Greece or obey the nature of economy. Or otherwise the question that has been pushed to the top of the agenda in Europe over the last two weeks is this: should the EU step in and save Greece from going bankrupt and, if yes, how?
Greecevhas become the second-most risky sovereign borrower in the world with credit markets indicating that it is more likely than not to default on its debts, according to a study. A study of credit default swap markets, which measure investor sentiment towards a borrowers’ likelihood of default, indicates that, over the past three months, Greece has jumped from ninth to second in a league table of the riskiest sovereign borrowers, compiled by data provider CMA 1.
Despite all conversations and discussions the EU and IMF show its helpful and generous hand to Greece and Greek adminstration. Greece was commended by European Union and International Monetary Fund experts on Wednesday for making a good start in implementing the fiscal and structural economic reforms needed to emerge from its debt crisis. “The economic adjustment programme appears to be acting as a catalyst, including in areas where reform efforts have been lacking for many years,” the European Commission, the European Central Bank and the IMF said in a joint report. Greece’s eurozone partners and the IMF approved a €110bn rescue plan for Greece in May on condition that the Socialist government in Athens should swallow its prescribed medicine, including sweeping cuts in public expenditure and reforms to labour markets, pensions and the tax system 2.
European Unieon's aid reach Greece however there is a strong and unsatisfied group and autorities inside of EU and they feel that the EU would be losing face and prestige if it is not able to cope with its own internal problems. To call in the United States-dominated IMF would be a serious blow to Europe’s confidence and would reflect badly on the value of the euro 3.
Finally it is not the only problem of Greece. The financial crisis has affected the rest od Europe also. The crsis waves showed its harmful faces. “The world is no longer divided into emerging market or developed market risk but it is viewed in terms of a country’s ability to repay its debts,” said Nigel Rendell, strategist at RBC. “There are several European countries in the top 10 riskiest sovereign nations, highlighting the fact that some of the gains from EU membership start to ring hollow for the likes of Bulgaria, Latvia and Romania, where it was assumed that membership promised reduced risk and lower borrowing costs 4.
These are testing times for the EU. Will the moral support for the Greeks, meant to frighten off the speculation vultures, be followed by concrete measures to stop Athens from bleeding to death? How much money are the Germans, the French and the Dutch willing to spend on this act of solidarity, inspired by well-understood self-interest 5?
-
http://www.ft.com/cms/s/0/df7882a4-8858-11df-aade-00144feabdc0.html
-
http://www.ft.com/cms/s/0/9e3ef9c0-89ad-11df-9ea6-00144feab49a.html
-
http://www.hurriyetdailynews.com/n.php?n=who-wants-a-strong-europe-2010-02-16
-
http://www.ft.com/cms/s/0/df7882a4-8858-11df-aade-00144feabdc0,dwp_uuid=2b8f1fea-e570-11de-81b4-00144feab49a.html
-
http://www.hurriyetdailynews.com/n.php?n=who-wants-a-strong-europe-2010-02-16
Últimos comentarios