Thursday, August 18, 2011

European Economy: No Escape

Anna Forostenko


The US bank Morgan Stanley has worsened the forecast for the world GDP growth: in 2011 it will go down from 4.2% to 3.9% and in the future from 4.5% to 3.8%. The bank states that the USA and Europe are close to recession.......
The bank also blames Europe for political mistakes and the Old World’s inadequate response to the sovereign debt crisis........
Meanwhile, the main problem of the Euro zone is shifting to Germany whose economy has frozen. Many experts say that this is not ordinary stagnation, the situation is getting incessantly worse........
German banks keep too many risky bonds and the economy has slowed down. It is high time to start pulling up one’s socks.....
Companies with less than 70 employees are facing redundancies. Extra days off are to be cancelled. Women’s retirement age will be raised from 60 to 65. Taxes and excise duties will go up and a solidarity tax will be established. Free medical care will disappear and the government will begin hunting for tax-dodgers.......

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