FACTORS AFFECTING THE ECONOMIC CONDITION OF EUROPE



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.

 Taking in view the above factors it is now clear why the Europe is suffering more than expected from this recession. However there is a great opportunity for the European Investors to invest in the trade of gold rather than the Euro. There are some good companies which are offering their services for those who want to deal in commodity rather than in currency. A big name in this respect is bbinary. They offer some great opportunities like trade with [bbinary] for quick profits and fast, easy withdrawals.Receive a 100% match bonus on your first deposit.

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