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

Good Morning everyone my name is Devil Anse

Jon Stewart Blasts Benjamin Netanyahu Speech

Court Allows Jewish Prayer on Temple Mount

Alabama Supreme Court orders halt to same-sex marriages

Let us look at the law re: Clinton Emails

Alabama Supreme Court Orders Judges to Stop Gay Marriages

Ted Cruz: GOP leadership planned to cave on Obama’s illegal amnesty all along

South Florida Man Charged With Growing Marijuana, Found Not Guilty (Jury Nullification)

167 REPUBLICANS REBEL AGAINST BOEHNER, SPEAKER RAMS THROUGH BILL TO FUND OBAMA AMNESTY WITH DEMOCRAT VOTES

Nitrogen gas executions approved by Oklahoma House

W.Va. Senate OKs bill to allow concealed carry without permit

California Homes Raided in Investigation Into Chinese ‘Birth Tourism’

Stoner rabbits will run amok if Utah legalises marijuana, DEA agent warns

Hillary Clinton Sent Every Official Email as Secretary of State from a Private Account

Boehner: Pass Clean DHS Bill Today

Exclusive: GA Poll Shows Scott Walker Leading Field, Rand Paul at 4 Percent (Huck 2nd, Bush 3rd)

Feds raid Texas political meeting

You can get free pancakes at IHOP today

Duck Commander Phil Robertson’s CPAC speech was viral in so many ways

BOEHNER, PRIEBUS EX-CHIEFS OF STAFF AIR ADS TO PRESSURE CONSERVATIVES RESISTING EXECUTIVE AMNESTY

The Sad Plight of Jihadi John

The 21 Foot Rule

We Grow More Equal as Technology Dematerializes the World

Father’s Day as Hate Speech? Feminism, Gay Rights Contribute to Fatherlessness, Experts Say at CPAC

Israel, Iran and Obama all accuse each other of lying about nuclear deal

Trump: I'm the Only One Who Can Beat Hillary

Maybe it’s time to elect a senator rather than a governor

Most young Republicans support legalizing pot (63%)

Booting from flash drive (Win 7 - XP)

An open letter to RNC Chairman Reince Priebus regarding his comments at CPAC (Republican Liberty Caucus)

Live broadcast : Benjamin Netanyahu to speak to AIPAC (10am EST)

Americans Favor Legalizing Pot and Criminalizing Congress

Republicans seek coveted Benjamin Netanyahu speech tickets from boycotting Democrats

IN MIDST OF WAR, UKRAINE BECOMES GATEWAY FOR JIHAD (ISIS Helps American Backed Ukraine)

Ted Cruz spills secret of GOP amnesty sabotage

Obama Threatened to Shoot Down Israeli Jets Attacking Iran

Chicago's first black major league baseball player Minnie Minoso dies, age 90

‘No You’re Not!’ Former NSA Chief Heckled for Calling Himself a ‘Libertarian’ at CPAC

The National-Security State’s ISIS Racket

ISIS

Scott Walker's legislative years: A staunch conservative, then as now

Russia Could Make China King of the South China Sea

Attempt tp smear Scott Walker blows up in media's face

Jeb Bush’s Greatest Liability (Aside From His Immigration Enthusiasm) May Be His Wife

How a [vaccination] jab plunged my life into madness

Why Iran Believes ISIS is a U.S. Creation

The Malaria Project

Politically biased headlines

Who Gets Food Stamps? White People, Mostly

Scott Walker: God's Gift to the Democratic Party

Bill Gates EXPOSED! Wants Depopulation Through Vaccines [CO2/Global Warming Excuse For Depopulation]


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: 123

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