End of the Euro Zone Crisis or Just another Mirage of Hope

The European credit rating agency Fitch raised hopes for a possible end of the Euro zone crisis by end of this year but most would disagree because of the complexity of the situation not just economically but also politically. While many have brushed away the hopes for an end claimed by Fitch as they’re riddled with high risks, the Italian and Spanish situation and dependence the dwindling hopes of their individual economic recovery are the best bets for any improvement that can be relayed to growth starved Euro zone. Greece’s situation has only seen a brief respite after the measures regarding its debt crisis by Germany and France late last year. But the situation on the whole still remains grim with most countries expecting to introduce austerity measures to drastically cut costs. This, many analysts believe can do more harm than good because of the consequent and cumulatively driven impacts on economic growth.

Among the countries having economic difficulty due to the formidable crisis in the Euro zone that ties their collective fate together, Germany slightly ahead of France has seen better time in comparison to most others and is still performing better along sides France with the latter being sustained by its nuclear energy supported economy. Angela Merkel, the German chancellor has been reported to have cautioned the grim situation for the year that lies ahead. In her opinion, while Germany has performed well economically last year, 2012 could be difficult owing to the tightening economy of the entire region with new nations like Italy and Spain getting more debt ridden than Greece.

While for most Europeans, the situation is highly volatile and any claims, like those made by Fitch, without substantial and tangible results any hopes for the positive change are no better than their current situation. Joblessness is rampant and so is the inflation making life harder than during the economic crisis post the great wars of the last century. Even with a voluntary write-down of the Greek debt, the situation doesn’t seems to have abated and the aggressive austerity measures are being feared to exasperate the mournful economic situation further if handled irresponsibly and without knowledge.

One Response to “End of the Euro Zone Crisis or Just another Mirage of Hope”

  1. Janella Ethridge Says:

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