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

The de facto meaning of the Consitution was, and continues to be, defined by testing it with actions.

Nevada GOP moves to dump caucuses in favor of 2016 primary (easier to rig)

Question to the Forum: When the SHTF, are You Prepared?

Romans chapter thirteenBy Adam Clarke 1731

"The Federalist Papers"

Our Enemies, the Saudis They’re invading Yemen to empower Al Qaeda

Putin says US helped North Caucasus separatists against Russia in the 2000s

Who Really Controls the World?

Non-Voting as an Act of Secession

State Says Bakers Should Pay $135,000 for Refusing to Bake Cake for Same-Sex Wedding

The Ted Cruz Blimp, Coming to a Sky Near You! (Ron Paul 2008, ripoff)

America's Soft Police State

"F*ck This Court": Woman Who Took AK-47 To Jailbreak Pens Epic Rant Against Judge

Frenzied Negros Smashing Police Cars In Baltimore

Hillary Clinton Is Corrupt And 100% Pure Evil

Education Secretary: Parents Who Opt Out Of Common Core are Racist – “Feds Will Step In” If Opt Out Continues…

Google Executive Identified in Deadly Mount Everest Avalanche

A-10 Warthog "Treason" Comments Cost Air Force General His Job

Brutal Antagonistic Cop Assaults Woman Just Innocently Trying to Exercise her Constitutional Rights

Iowa Faith and Freedom Coalition Summit - C-SPAN live

Marijuana Is Not, Repeat Not, a Gateway Drug

Cops Kill Man for Refusing to ID as He Dropped Off Stray Cat to Animal Shelter, Police Remain Silent

Lindsey Graham’s “All-Jewish Cabinet”

New York City buses must show 'killing Jews' ad, judge rules

As contributions fall, House GOP rebels blame party leaders

Say Yes to Ice Cream-Flavored Beer (Neo-Prohibitionists Say "No")

Bruce Jenner Blasted Online After Coming Out As a Republican: ‘Personally, I Am Disgusted’

Restoring the 10th Amendment

Cops Not Only Covered Up 15-Year Old Expolorer Scout Molested by Police, They Encouraged It

Ron Paul: Obama 'literally assassinated' Americans in airstrikes

Government Schooling in a Nutshell

Debian 8.0 'Jessie' is out and even Microsoft is celebrating

Ohio: 26 people suspected of having botulism; 27th confirmed

Cupcake Jones Supports the faggot agenda. Gets Go Fund Me Campaign Shut down

Obamatrade: A gift for Sharia regimes

Tesla wants to power your home with a battery

DrugFacts: Marijuana

Open Borders

The Monsanto overtake of the market

Should You Follow The (Copernican) Principle?

'Straight Pride' Posters Appear On Ohio's Youngstown State University Campus (removed)

Hillary Furious as Thousands of Americans Send Cigars to Her Office

A US Government Agency Quietly Acknowledged That Marijuana May Help Fight Brain Tumors

From the Archives Elvis Covers AC/DC's 'Whole Lot of Rosie'

Gaddafi’s Revenge: Europe Can Save Africans From Drowning—Or Itself From Being Swamped

Why Is Yemen Our War?

The Pitbull Behind the Homosexual Agenda

6th grade students punished for "pantsing"

Liberland: hundreds of thousands apply to live in world's newest 'country

Frat boys spit on wounded vet, urinate on American flag


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: 140

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