Europe is facing the huge
economic crisis of this century. Majority of the industries and especially the baking sector is sinking due to this
economic slump. The intensity of this recession is extensive in Europe as
compare to other countries. Actually there are various factors which are
intensifying this recession. In this article a brief light is thrown on some
prominent factors which are the main reason of this economic crisis inthe Europe. Following are the reasons:
- Greece election and the opposition party
In last week majority of the
critics were placing the issue of Greece election on a high place in the unity
of European Union. Some were expressing that if the opposition party wins in
the general election than they will demand some extra and unviable terms for
the rehabilitation of the Greece economy. Under such circumstances there was a
big chance for the resignation of Greece from the European Union. While others
were stating that it is very crucial point for the unity of European Union and
its progress. However, on 17th of June the peoples of Greece vote
the party which is in favor of standing with European Union and solve their
problems under the umbrella of European Union. In this way a potential danger
for the unity of European Union went away without any damages. It is a good
sign for the Euro and the other related currencies like AUD and especially USD that
is why in last two years they currencies got good position in the market.
However it is not the end of every bad happening for the Europe. There are some
other factors which are also affecting the economic crisis intensively.
- Bailout program for Spain
Bailout program for Spain is still a big threat for the European
Union because it involves a huge amount of money and in addition to that Spain
need very soft terms for revival her banking sector. But the other members of
European Union are not willing to deal on lower rates and on soft terms because
few of them receive the bailout program
at very tough conditions and terms in recent past. That is why they are not
ready to provide soft terms bailout
program to Spain. They claim that in this way their people will start
thinking that they are the second class citizen of European Union. It is very
dangerous thinking for the unity of European Union.
- Over all economic conditions of the majority of European countries
Almost every economy in the world
is struggling due to the current ongoing recession. Same is the case with all
economies of the European region. In other words the overall economic condition
of most of the European countries is not good. This is a big factor which is
intensifying the potential of economic crisis in Europe. Except few almost all
the countries are thinking about the bailout
program for their revival. But it is not possible for European Union and IMF to provide proper required help to
all the countries at the same time. This is the reason which is increasing the
disaster of economic recession.
- Thinking of German investors
A big player in bailout programs of the European
Union is German investors. They are the major investor in providing the
financial help to the demanding countries in the European region.The German
investors are now thinking that it is risky to invest more money to the already
sinking economies. This rising trend in the minds of German investors is
creating the difficult situation for the European Union to provide big bailout
program to their members. No doubt it is very alarming situation for the
removal of ongoing economic crisis.
·
Sense of
deprived among the members of European Union
European Union Authorities are
considering providing the bailout program to big country like Spain on some
soft terms. This dual standards treatment is creating a sense of inferiority in
the minds of people of suffering countries by this dual stander. In result some
them are considering to resign the membership of European Union so that they
can handle their on their own terms and conditions.
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