- Posted September 9, 2012 by
This iReport is part of an assignment:
Economy: Are you better off?
Euro Zone Crises: A Danger For The Global Economy?!
Personal Financial and Investment Consultant
Eurozone crisis is the biggest threat to the global economy and it goes in a hard period and every day enters in hard debt crises. Today problem isn't communicated only to greece as it's communicated to the whole euro zone. Time is less, if today they will not change something in their short term strategy. global economic growth will likely remain tepid in 2012 with most regions expanding at a below-potential pace. A further sharp rise in energy prices may also stifle global development.
Four major weaknesses continue to conspire against robust economic recovery:
A) deleveraging by banks, firms and households, which continues to restrain normal credit flows and consumer and investment demand;
B) unemployment remains high, a condition that is both cause and effect in preventing economic recovery;
C) fiscal austerity responses to rising public debts deter economic growth and make a return to debt sustainability all the more difficult;
D) bank exposures to sovereign debt perpetuate fragility in the financial sector, which in turn spurs continued deleveraging.
E) Greece moment, financing greece, but change isn't good as we expected.
Even if further deepening and spreading of the debt crisis in the euro area can be avoided, economic activity in the European Union is expected to stagnate in 2012. World trade growth will slow further to 4.1 per cent in 2012, down from 13.1 per cent in 2010 and 6.6 per cent in 2011. For this all i will write some of specific results in Euro zone which will be in 2012-2014 year.
A) Job Crises
B) Low costo of living
C) Low economic activities
D) Rising of tax rate
G) Budget crises
E) Euro crises
F) High prices on products
G) High inflation
This all will end opportunities of Euro and Euro zone economy. Future of Eurozone can be depended on Germany and France movement to recover economy of Eurozone and change something in this situation but they can or not? Maybe they are tired to feed countries with zero opportunities?
If Germany and France will act quickly we will see result, if not Euro Zone will stay in past and Europe will start new life with their own correncies from 2014 year.