[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

How to Test Gold & Silver at Home: 5 Proven Bullion Testing Methods

Do You Know Someone ... Suffering From “Trump Unacceptance & Resistance Disorder” --- (TURD)?

Happy Robert E. Lee Day

Will the CIA Assassinate Trump? Hes Being Really Dumb For Questioning Russia Conclusions

Nanny State Unhinged: School Employee Fired for Politely Correcting Students Spelling on Twitter

Time to Pay Attention: 8 Men Have as Much Money as Half the Entire World

How BHO Fundamentally Transformed the USA ... not in economics - government - foreign policy --- in cultural apocalypse - tyranny - aids !

When A Fugitive Dies, "Blue Privilege" Makes All the Difference

'He' Didn't Commit the Crime... 'They' Did --- Preferred Gender Pronouns confound in Berkeley murder case.

New Star to Appear in Night Sky, Heralding Balaams Prophecy of Messiah

Woman from SLO murdered in Berkeley ... criminal apologist --- whackkko political activist arrested

Donald Trump: Kremlin Employee of the Month?

Sharpton: 'Thank God we lived in the age of Obama' - Launches anti-Trump march along the National Mall

Juan Williams - In his hands ... civil rights have become --- swivel rights.

BREAKING: Russia releases picture of Trump with hooker!

20 Years for 3 Pills Cops Entrap Teen in Cruel Online Dating Scam Preying on Loneliness

Its time to face facts: Obamas presidency was a failure

Fake News: Wash Post Changes Story on Trump Firing D.C. Natl Guard General

'This is my vehicle, sir': Shocking moment black Northwestern University PhD student is beaten and cuffed when cops refuse to believe he owns the Chevy he's driving

Top Bishop: Europe Will Soon Be Muslim Because of Our Stupidit

Virgil: Trumps Nationalist Vision vs. the Gospel of Globalism

In the Shopping Cart of a Food Stamp Household: Lots of Soda

Tens of Thousands protest: Inauguration Riots coverage, with NBC's Maria Shriver

Rudy Giuliani To Head Up Trump's Cybersecurity Team As The Internet Laughs At Giuliani's Security Bona Fides

Court Says Tossing A Flashbang Grenade Into A Room With A Toddler Is 'Unreasonable' Police Behavior

Dangerous Crossroads: Trumps Defense Nominee General James Mad Dog Mattis Outlines Plans for Global War (With Bipartisan Support)

Timing Is Extremely Unusual: D.C. National Guard Chief Must Stand Down During Inauguration

Todays Celebrity Society Begs For A Spanking

Imagine That! Police Solve Far More Murders After they Stop Arresting Cannabis Users

Cops Beat, Arrest Innocent Man After Accusing Him of Stealing His OWN CAR

Do Not Trust Governments or Their Employees

Trump Recruits Another Goldman Sachs Bankster

Paul Ryan: Trump mass deportations "not happening"

Armed civilian saves ambushed Arizona trooper, kills attacker

JUST IN : Tucker Carlson is Already KILLING Megyn Kellys Ratings!

Russia Must be Destroyed: John McCain and the Case of the Dodgy Dossier

Russia Today interrupts C-SPAN programming (Maxine Waters abducted by RT)

Baaaaad behaviour! Herd of sheep trample their lady shepherd before one returns to ram her after being spooked by car

Ryan on Trump's mass deportation plan: 'It's not happening'

Dog stays with owner for 20 hours after man breaks his neck in Michigan

The Establishments Fake News Assault On Trump

Marijuana DOES cause schizophrenia and triggers heart attacks, experts say in landmark study that slams most of the drug's medical benefits as 'unproven'

Police Charge Student For Threat Made At Arundel High School

Rosie O'Donnell calls for MARTIAL LAW and Trump's inauguration to be delayed until he is 'cleared' of involvement in Russian hack

President-Elect Trump Announces Former Mayor Rudolph Giuliani to Lend Expertise to Cyber Security Efforts

Watch this ridiculous billiards, golf trick shot that took 11 hours to build

All Aboard Floridas Brightline unveils first passenger train

The Surveillance State Did Not Disappear With The Trump Victory: It Is Still Lurking And Completely Intact

Cops Just Got Surveyed About Weed and the Results Will Surprise You

US Intel Agencies Try to Strong-Arm Trump into War With Russia


Status: Not Logged In; Sign In

International News
See other International News Articles

Title: Fear returns to the eurozone
Source: [None]
URL Source: http://www.independent.co.uk/news/w ... s-to-the-eurozone-7670724.html
Published: Apr 24, 2012
Author: Ben Chu
Post Date: 2012-04-24 16:44:28 by Capitalist Eric
Keywords: None
Views: 277

Markets take fright at Hollande’s election lead as Dutch government steps down over budget impasse. UK Treasury seeks £16bncuts because of uncertainty

Europe’s economy took another dramatic lurch downwards yesterday as investors found fresh reason to doubt whether the Continent’s politicians will be capable of resolving the sovereign debt crisis that continues to plague the single currency bloc. Stock markets reacted badly to a deluge of disappointing economic data, the victory of the Socialist candidate François Hollande in the first round of the French presidential election and the collapse of the Dutch government.

Taking fright, Germany’s Dax index shed 3.4 per cent, while the CAC 40 in Paris slid by 2.8 per cent. In London, the FTSE100 index of leading shares closed down 1.85 per cent. Stocks on the other side of the Atlantic also fell, with New York’s Dow Jones index opening down 1 per cent yesterday. Mr Hollande has promised to renegotiate the EU's "fiscal compact", agreed last December.

This puts him on a potential collision course with the German Chancellor, Angela Merkel, who desperately needs the strict budget-reduction agreement to persuade her own restive parliament to approve continued financial support from Germany for other governments in the struggling eurozone.

The Netherlands became an unwelcome new focus for investor concern when the Dutch Prime Minister, Mark Rutte, tendered his resignation after the failure of his coalition government to agree on measures to slash the government's deficit, which came in at 4.7 per cent of GDP in 2011.

The specific trigger for the government's fall was the withdrawal of support for €16bn (£13bn) budget cuts by Mr Rutte's far-right coalition partner, Geert Wilders. This has raised the prospect that the Netherlands may miss its target of reducing its deficit to 3 per cent this year. Elections will now be held as early as June and the sudden injection of political uncertainty sent Dutch borrowing costs, which are among the lowest in the eurozone, up yesterday to 2.43 per cent.

The difference between German and Dutch borrowing rates stretched to its highest level since the beginning of the crisis in 2010. The credit-rating agency Fitch last week threatened to downgrade the Netherlands if it failed to agree on deficit reduction. This could have dire repercussions for the rest of the eurozone since the Netherlands is one of the major guarantors of the currency bloc's bailout fund.

"The uncertainty about the Dutch fiscal policy is tarnishing the status of the Netherlands as one of the few safe havens in the eurozone," said Ulrich Leuchtmann, of Commerzbank.

Fears over one of the eurozone's top bailout candidates, Spain, were also reactivated yesterday when the country's central bank estimated that the Spanish economy shrank by 0.4 per cent in the first quarter of the year.

This would put the beleaguered nation, which is presently grappling with an employment level of 23 per cent, firmly back in recession. The European statistics agency, Eurostat, also confirmed that Spain's budget deficit came in at 8.5 per cent of GDP last year, confounding hopes that the previous estimate of the Spanish Prime Minister, Mariano Rajoy, would prove overly pessimistic.

The Madrid government is seeking to reduce the gap between its expenditure and revenues to 5.3 per cent in 2012, but investors increasingly fear that this massive fiscal consolidation effort could merely push the Spanish economy further into recession.

The sense of alarm about the Continent's growth prospects – widely seen as essential if the eurozone is to escape this crisis – was compounded by a series of surveys of purchasing managers' indices, which reflect financial activity. The eurozone preliminary composite Purchasing Managers' Index, or PMI, fell to a five-month low of 47.4 in April, down from 49.1 in March. Any reading of below 50 signals contraction. Analysts had expected a modest increase. Even manufacturing activity in Germany, previously an island of strength in the eurozone, weakened, hitting a three-year low of 46.3 in April.

The Eurostat figures also showed that national debts are rising despite the austerity measures in member states. Though the 17 states reduced their collective deficits from 6.2 per cent of gross domestic product in 2010 to 4.1 per cent in 2011, total indebtedness for the zone still rose 1.9 percentage points to 87.2 per cent of GDP.

There was a strong message of further austerity to come from the British Government, too, yesterday. The Chief Secretary to the Treasury, Danny Alexander, used a speech to the Institute of Fiscal Studies to instruct Whitehall departments to identify £16bn more in savings in order to build up a contingency fund for unexpected new spending demands. The UK will discover tomorrow whether the British economy has returned to recession, when the Office for National Statistics releases its preliminary estimate of GDP growth over the first quarter of 2012. (1 image)

Post Comment   Private Reply   Ignore Thread  


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com