LiteForex - Single European currency is on the razor-edge.In the markets do not cease talk that the Eurozone as a formation of the states can break up.
The cause is large-scale problems in Greece and its companions in misfortune. There was even an abbreviation - the countries of PIGS is Portugal, Ireland, Greece, Spain. Their budget deficits in time surpass admissible in the Eurozone, and the condition of labor market in general leaves much to be desired. And though from the Greek authorities assurances of fast neutralization of a budget deficit at the expense of all admissible measures continue to sound, scepticism of economists does not cease.
In success of the Greek question also one of the most authoritative economists is not confident in the world professor Nuriel Rubini. According to him, it “ never it was concerning further prospects of the eurozone as pessimistic as now “. Rubini emphasizes that directly tomorrow the Eurozone, of course, will not break up, but here the probability that the uniform organization will break up to two areas - the center and the periphery - is rather high. “ If Greece does not cope with tests, it will become a problem for a zone of circulation of euro. But if Spain does not sustain - that it will already be accident “ - professor is sure.
Thus, problems of Spain (disregarding situations on forex) come to the first front line now and take on it the worthy place. What did the country cause a stir in? Record unemployment rates, and huge problems of national currency institutes. And if Greece many already in absentia buried and wrote down in a passive, then still did not frighten investors by problems of Spain yet and rating agencies did not show the contempt yet, publicly lowering one credit rating behind another. However, in the European Union, as well as everywhere, quiet and far-sighted figures meet. The EU commissioner on financially - credit policy Joaquin Almunia, in particular, urged players not to be frightened more than once shadows of Greece and not to arrange a hysterics from scratch. Today the European Commission in general approved the plan of Greece for reduction of a budget deficit of the country, however, with a number of reservations, but all-. According to comments of European Commission, for February Ministers of Finance will consider the recommendations for Greece, and the country has to provide the first report in March. Besides, until the end of 2010 Greece has to reduce a budget deficit by 4%, and by 2013 it has to be reduced by 2%.
We will not predict yet whether Greece will manage to realize the guarantees, but today Almunia emphasized that the country can cope with problems independently, and hoped that in case of need the Eurogroup will give to Greece support in a type of further recommendations. Means, not all for Greece is lost - the authorities of the country declared on Wednesday one measure of attraction of financial resources in the distressful budget - a freezing of salaries of public servants and growth of taxes on fuel. It is also offered to reconsider a tax policy of the country to reorient it on wealthy citizens - the same purpose, to add one more financial streamlet to the budget.
The authorities in Europe take great pain to resist to any talk of rather possible disintegration of the Eurozone and call similar comments absurd. Greece also does not want to hear about leaving the eurozone: the Minister of Finance Giorgos Papakonstantinou the day before reported that the country will be able to solve the problem with a budget deficit, and about the help Greece asks nobody. “ We asked to give nobody to us monetary support, and we do not wait for the help from the outside “ - the monetary politician emphasized.
At all this investors always need to be afraid of something: let`s remember Dubai at least. Talk was nearly about a doomsday and fast death for euro - nothing, shouted and forgot, the emirate was helped by the near fellow, accident did not happen. Of course, there is still Portugal - last week Moody " agency; s Investors Service hinted that urgent decrease in a budget deficit is necessary to the country to help economy to get out of a crisis hole. It is thought that so far the countries will revise on the quiet the budgets, fears Forex of brokers and poulyanutsya. It is necessary to remember only that problems in the Eurozone and the USA same - just scale a bit different owing to scales and time of the beginning of crisis.