Current World Event's Report Essay Example | Topics and Well Written Essays - 1000 words

Current World Events Report - Essay ExampleDespite, or perhaps in spite, of these problems, the European Union maintains that it will precisely come through additional bailout funds to those who can follow its austerity and reporting measures. The people from these troubled economies are unhappy, as unemployment rates soar, and reject the austerity measures that outright negatively impact their lives. Many have taken the streets, while some have committed suicides (Joy, 2012). The economic situations in Greece, Portugal, Spain and Italy are affecting the economic discipline of the European Union (EU) and the globe, while increasing political tension and social unrest in the section. The economic situation of the European Unions region and the globe are interconnected, and so the economic problems in Greece, Portugal, Spain and Italy are having widespread financial consequences. Dario Perkins of Lombard Street Research stated that the economic output fell by 20% since the crisis began If you look at what Greece is going through, its comparable with the Great Depression (Stewart, 2012). As the world reels away from the slow recovery of the 2008 global financial crisis, several(prenominal) European countries are in for the worse, as they enter Depression-like conditions. The EU responds with a bailout program, but not without strings attached. The bailout funds include austerity measures that will dismiss into social welfare Economides explained that the projected cuts could break down into 11.5 billion euros worth of cuts -- from pensions and wages as well as the sale of state property (Joy, 2012). minify social welfare will further make it hard for ordinary citizens to deal with their impoverished conditions. As for the infamous Grexit, if Greece chooses to leave the EU, this may be scoop for the regions credit standing, but it will break the euro currency (Shann, 2012). It will prove that the concept of the euro is unsustainable, when countries have not fully integrated their regulation, constancy markets, welfare payments and taxes for resources to move quickly to equalize competitiveness (Shann, 2012). In addition, the widespread bailouts to the banks are not going as faster as it should, according to the news program (Shann, 2012). As a result, depositors are transferring their investments and deposit funds in other countries Depositors would transfer funds abroad in case these countries left the euro and devalued (Shann, 2012). The statistics place the amount of funds outflowing from countries that need the money the most A total of $425 billion was pulled from banks in Spain, Portugal, Ireland and Greece in the 12 months ended July 31, according to information compiled by Bloomberg (Onaran, 2012). The pullout means business for other countries, but spells further economic problems at the Euroland, as it assists the former nations deal with their banking conditions. The wearing off of deposits is induce banks in those cou ntries to pay more to keep them The average rate for new loans to nonfinancial corporations in July was above 7 percent in Greece, 6.5 percent in Spain and 6.2 percent in Italy, according to ECB data, when It was 4 percent in Germany, France and the Netherlands (Onaran, 2012). With dwindling funds being sucked in the banking sectors, the funds needed to revitalize the economy and provide employment are not forthcoming. As these countries further experience economic problems, their politics and populace are at a