Forex news. European Economic Area keeps sending alarming signals, and the further it goes, the more persistent they are. Report of French Prime Minister, in which he indicated the amended forecast of GDP growth, was another proof of this.
The figures appeared cheerless – if for the present year the decline currently amounts to 0.25%, then during the next year this mark amounts to 0.5% already.
The government of France made this amendments judging from modern economic realias. The situation in Europe is such that it is tough even for successful countries. As a result, they are obliged to cut budget expenditures, which does not add up any optimism to economy.
French government is searching for the ways to cut budget deficit, among them introduction of a new 3% tax for the rich and reconsideration of tobacco and alcohol prices.
Experts explain that such radical measures to cut budget deficit are caused by spreading rumours about a possible decline of French credit rating, which up to this point was considered impeccable.
However, these are not only rating agencies that are fanning the flame, for the majority of financial analytics do not miss any chance to demonstrate their witness amid the problems of the European Union.
Thus, recently the former FRS Chairman A. Greenspan has authoritatively stated that 17 countries, which are members of the EU, do not have common future any more. Euro will fall apart in the nearest future, and it will pull the entire world economy with it.
Greenspan explained his position by the fact that European banks have disbursed too many loans to the countries, which are on the edge of default. Moreover, economic and cultural contrasts of Northern and Southern Europe lead to the point when rather lazy southerners financially “leech off” France, Germany, and Finland.
In this reference, mister Greenspan regards US economy as more stable, and, in his opinion, it will not experience another recession.
The speech of the former Chairman of European Commission J. Delors had similar tones. In his interview to the journalists he claimed that he was disappointed with the meeting of German and French leaders, as it had been expected that certain steps towards solving European debt problems would be considered. The suggested by Delors variant to provide additional powers to the US was rejected.
The opinion of influential financial experts deserves respect, but.... no more than this. Even such harsh expressions of “the honourable financial old-timers” made absolutely no impression on the world markets and had no influence on their dynamics, as the analytics of Department of Volume Analysis explained.
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