Jan 4, 2012
The Eurozone goes from one crisis to the next.
Greece
After bailouts and countless summits, Greece remains in a mess and is still in danger of collapsing, and dragging down financiers and the European Union with it. Greece, with a national debt of over €350 billion has reached the point where its sovereign debt is equal to 166% of its annual GDP. Conditions for the people have deteriorated so much, that many are fleeing from the impossible and ruinous situation.
Italy
The yield on 10-year Italian bonds has risen to around the 7% mark which is a key psychological barrier. If it stays at this mark or goes even higher, it will mean big trouble for Italy. The Italian government just can't afford to take loans that are so expensive. The higher the yield on 10-year bonds goes, the worse things are going to be for Italy.
China
China has stressed it will not be a "saviour" to Europe, as President Hu Jintao embarks on an official visit to the continent for the crucial G20 summit in Cannes. China, holder of the world's largest foreign exchange reserves at $3.2 trillion, said it wants more clarity before investing. The official Xinhua news agency, used to communicate Communist Party policy, said Europe must address its own financial woes. "China can neither take up the role as a saviour to the Europeans, nor provide a 'cure' for the European malaise," it stated. "Obviously, it is up to European countries themselves to tackle their financial problems."
Germany
...the economic crisis has shaken Europe’s post-war model, and Germany increasingly calls the shots. As countries struggle to pay their debts, only Chancellor Angela Merkel has enough money to haul them out of trouble. And the price Merkel is demanding — more control over how they run their economies — is setting off alarm bells in capitals across the continent.
The Vatican
The Pope has stated that the world's nations need to transfer part of their powers to a world authority. Then he argued that "there is an urgent need for a true world political authority."
Read full article: Stanton_Despair in Europe (2.6MB)
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