Relief to Euro-zone
Monday, October 31st, 2011The Euro-zone agreement was reached after tough negotiations and this brought relief to the economic chaos. There was a 5% rise in the markets and the French and German bank stock prices rose. The agreement has brought a new era of co-operation between the European nations.
The leaders of the 17 Euro-zone nations have agreed to wipe off 50% of the Greek debt, recapitalize the European banks and strengthen the European Financial Stability Facility (EFSF) to prevent Italy or Spain from collapsing.
If the meeting between the leaders had failed, it could have led to economic chaos and recession around the world. German chancellor Angela Merkel emerged the triumphant leader because she imposed Germany’s vision on Europe, underlining the need of austerity and better economic management while showing solidarity towards the weakest members of European club.
China is interested in a single European currency as a large part of China’s exports go to Europe. China is expected to buy up European sovereign debt and the Euro-zone President Herman Van Rompuy is flying to Beijing.
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