The €uro Crash. European Time Bomb
Irland, Greece, Portugal, Italy, Spain and then France..
by Heinz Duthel
Euro Crash. The European Time Bomb.
The Spread beyond Greece, Ireland, Portugal, Spain, United Kingdom, France and finally Germany. The euro is a ticking time bomb and the Countdown runs. A currency reform in the near future is more likely than never. Politicians desperately try to fake financial data and debt, lie to the people to calm down and cheat.
They fear riots like in Greece and France, or even revolutions like those in North Africa. Security authorities and intelligence agencies are already warning of civil war-like conditions in Europe.
The primary means for fiscal coordination within the EU lies in the Broad Economic Policy Guidelines which are written for every member state, but with particular reference to the 17 current members of the Eurozone. These guidelines are not binding, but are intended to represent policy coordination among the EU member states, so as to take into account the linked structures of their economies.
For their mutual assurance and stability of the currency, members of the Eurozone have to respect the Stability and Growth Pact, which sets agreed limits on deficits and national debt, with associated sanctions for deviation. The Pact originally set a limit of 3% of GDP for the yearly deficit of all Eurozone member states; with fines for any state which exceeded this amount. In 2005, Portugal, Germany, and France had all exceeded this amount, but the Council of Ministers had not voted to fine those states. Subsequently, reforms were adopted to provide more flexibility and ensure that the deficit criteria took into account the economic conditions of the member states, and additional factors.
The Organisation for Economic Cooperation and Development downgraded its economic forecasts on 20 March 2008 for the Eurozone for the first half of 2008. Europe does not have room to ease fiscal or monetary policy, the 30-nation group warned. For the euro zone, the OECD now forecasts first-quarter GDP growth of just 0.5%, with no improvement in the second quarter, which is expected to show just a 0.4% gain.
- Heinz Duthel, April 2013
- Download options:
- EPUB 2 (Adobe DRM)
You can read this item using any of the following Kobo apps and devices: