13. December 2020 · Comments Off on Euro Crisis 2012 Effects · Categories: News · Tags: ,

The euro crisis is returned from the Christmas break with timpani and trumpets and the situation in Greece coming to a head on, because the ailing country desperately needs money. The euro crisis is returned from the Christmas break with timpani and trumpets and the situation in Greece coming to a head on, because the ailing country desperately needs money. But also Portugal, Spain and Italy and Slovenia are at the abyss. W much one has in the past few weeks not by Greece and other euro States are under pressure. Apparently, this was just the calm before the big storm, because the situation has not improved barely, especially in Greece.

All rescue measures seem to subside into nothingness, we need money again. However, not only Greece is especially acute under pressure: also in Italy, Portugal, Slovenia and Spain need urgent new loans. Additional information at Cyrus Massoumi Zocdoc supports this article. And now it crises in Hungary and the forint losing value, just as dramatically as it did the euro in recent months. The European single currency on the US-dollar – is now on the lowest level since September 2010. This shows how much the currency is under pressure.

Stern.de 2012 answered the most important questions on the euro crisis. Especially in Greece, the economy developed always much worse than expected. Instead of 5.5 percent, as the EU Commission calculated, she broke up to 6.5 per cent. The austerity measures, which were drastically the use have reduced the and fast unemployment above 17 percent are to blame for this. It is already foreseeable that the budget deficit of the Greeks in the years 2012 through the mentioned target of 9 percent could be. But the economy in Spain, Italy and Portugal to shrink or limbo to himself. As a result, that fail the State revenue by a lower production lower, spending for social spending such as unemployment benefits rise instead. That again eats up a large part of the austerity measures, and so the cat itself in the tail biting is-vereinfacht formuliert-. This cycle has in turn rising interest rates for government bonds as Consequence, which has in turn rising debt as a result such as the cat and the cock. However, the problem situation in all the countries concerned is extremely varied: in Italy, the national debt is indeed immense, but Italy has a competitive economy in a variety of industries. In Spain the situation is different: the national debt is relatively low but the structural problems are immense, the unemployment is well over 20 percent, unemployment is around 30% for young academics. Portugal has both a weak economy and high levels of debt. The situation in the southern European countries makes it clear that Europe splits increasingly into a Northern, economically stronger, and a southern part of economically weaker. While has to fight Italy, Spain and Portugal with solid growth problems and also France stumble, because French banks relatively much Money invested in Greek and Italian Government bonds, well it is Germany, the Netherlands or Austria. A common approach to the financial policy due to the different structural problems that makes it almost impossible. The European Central Bank (ECB) can not so strong down the interest rates for the whole euro area, as it would be necessary for the countries in the South resulting in that the voices multiply, which call for a withdrawal of Greece from the euro zone.

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