Facing The Euro Zone Of A New Recession?
The EU stands to fight some great risks to which companies in Europe have difficulties since August. Even Germany’s economy comes on the basis of the current situation in the fall. Therefore, the financial experts in the area of corporate finance predict that the eurozone will soon slide into a new recession, if she do so on. The company of Markit economics, which conducts comprehensive surveys, published figures showing that the euro zone will have still greater difficulty, since it has to cope with the impending debt crisis on Thursday. The high debt of the EU have already led to a high unemployment rate and show that the future of the euro zone can make very difficult. With the debt crisis and the decline in the German economy the European decision makers reflected increasingly worried, because it has always trusted Germany with the strongest economic performance in Europe.
The economic strength recently suffered the most cuts for 3 years. This shows that Germany possibly in the next few months further difficulties over is. According to Markit, the poor economic performance has also negative impact on the entire European area in August. Thus, so far good economic relations with its neighbors are at risk as Germany can not keep the previous steady performance due to the increasing debt in the surrounding countries. Greece is positioned in relation to declining economic performance but on the 1st. By the miserable situation, billions of euros will be needed to stave off the bankruptcy. In addition, the Greek Government does not comply with the agreements and thus increasing discussions about a possible leaving of the EU. Especially Angela Merkel reinforced the pressure on the Greek Government and would not transfer such as the heads of Government of the other States continue to after Greece money without strict conditions.
Merkel and hollande met in this regard with the Greek Prime Minister Antonis of Samaras in Berlin. The meeting will explore whether Greece corresponding margins as regards the necessary spending cuts granted Gets or not. The corporate finance experts suggest that Angela Merkel should loosen the requirements for obtaining additional funds in any way. The Greek Government is currently working on a plan that envisages cuts amounting to 11.5 billion euros by 2014. Still expects Greece, that they make crucial structural changes in its economy, so that the cuts are possible and they can afford the agreed installments. Due to the enormous debt it will be very difficult for Samara, to push through economic reform and to implement the cuts. To do this, he asked the Governments to give him a little space so that he can reduce the deficit. The Euro Group Chief Jean-Claude Juncker said that the decision in this regard depends on the report of the troika. Juncker also said that Greece is close to the end and the necessary decisions quickly need to be. Generally, he does not want that Greece leaves the EU and demands by the Government that quickly and efficiently is traded, so that the economy can rebound may still. John Beth, corporate finance, and leadership training expert
