New Cracks Appear in Europe’s Economy
There are many players in the eurozone placing large bets on the union and the euro surviving. Not only are massive sums of money being used to try and reduce the financial crisis, but many businesses would be hurt at least in the short term if the euro were to break apart. While it may seem that the financial crisis is averted based on the recent announcement by the European Central Bank (ECB) of additional monetary support, I would say it’s been postponed at best.
The first sign is that there is currently a large amount of money leaving the poorer, troubled nations and being moved up into the stronger members of the eurozone. This flight of capital can certainly accelerate any financial crisis, especially one so close to the edge. According to data from Bloomberg, approximately $425 billion (326 billion euros) left Spain, Greece, Ireland, and Portugal in the past fiscal year, ended July 31. Bloomberg also states that approximately 300 billion euros moved into the economies of the seven core members of the eurozone, including Germany. Read More at New Cracks Appear in Europe’s Economy