Eurozone economy under pressure
Despite initially appearing to hold up well during the worldwide recession the Eurozone economy is now under severe pressure. Retail sales in February were down 0.6% compared to January but down a whopping 1.1% compared to February last year. When you also take into account that unemployment in the Eurozone has now risen above 10% it is not difficult to see that confidence in Europe has been hit.
Today's news regarding the Greek debt debacle is also another hammer blow to the European economy and there serious concerns about the short to medium-term outlook. It is common knowledge that the Spanish, Portuguese and Irish economies are also struggling and if debt issues continue to cloud the economic picture there are concerns we could see further casualties and further bailouts required. Despite putting on something of a united front in public it is becoming more and more apparent that behind the scenes there is significant in-fighting with French and German governments leading the way.
After initially seeming to handle its first major economic crisis fairly well, the European Union is now struggling to contain what could turn out to be a disaster. If the Greek issue is not contained in the short-term there will be complications within European debt markets and the opportunity to refinance and refloat economies such as Spain, Portugal and Ireland may well be lost. This is a situation which needs to be monitored very carefully.
Share this..
Related stories
Bank of England leaves base rates unchanged
The Bank of England MPC (Monetary Policy Committee) has today maintained UK base rates at 0.5% and refrained from announcing an increase in funding for the quantitative easing program. This was very much the case which we covered earlier today although the authorities have indicated they will look again at the UK economy next month and decide whether to alter base rates or increase the funding for...
Read MoreThe Co-op group sees £124 million profit
09/04/2015 The Co-Operative group made profits of £124 million in 2014 after it lost £255 million the previous year. The Co-op reported that its food and funeral businesses performed well last year, as sales in food rose by 0.4%. The only part of the company that lost money was its insurance business. The Co-op is in the midst of a three year plan to help steady the business after 2013...
Read MoreOECD sparks bitter war of words with S&P
The Organisation for Economic Co-operation and Development (OECD) is this evening involved in a bitter war of words with credit ratings agency Standard and Poor's after a threat to downgrade the credit ratings of the UK and US. This comes after S&P recently went ahead with a downgrade of Spain's credit rating from AAA to AA+ in what they claim was a reflection of both the Spanish economy and the S...
Read MoreAndrew Sentence still pushing for rate rise
Andrew Sentence, one of the members of the Bank of England's MPC, is still pushing for a rise in UK base rates amid signs that inflation now has "a mind of its own". This is a situation which has been formulating for some time but it is one which Mervyn King, the governor of the Bank of England, has effectively ignored as a secondary issue behind the UK economic recovery. However Andrew Sentenc...
Read MoreIs the internet your way out of financial trouble?
While the internet has changed so many areas of our every day lives it has also opened up a mass of opportunities which many people have yet to realise. However, with the recession starting to bite in the UK it seems as though now may be a perfect time to take a look at possible options open to you.
People seem to miss the point that the internet has not only opened up local market...