Big things are happening in the EU. Greece is reorganizing their government and France is taking a backwards approach to solving their economic issues to the chagrin of Germany. Lets start with Greece. They received a bail out earlier but it came with a few strings. Greece must demonstrate major cutbacks and raise taxes, both must be accomplished by mid-June, and time is running out. Greece's president tried to unite the parties to create a collation, which failed, so the Greece people are heading back to vote once again. Greece has to clean up it's act because they are running out of time and eventually other countries are going to stop giving out money. Uh oh. Greece you are running out of bridges.
Now lets move a little to the north and west and come upon France. What do you do when you are in an economic downturn? Well the first thing that comes to mind is to cut spending and raise taxes. Not France. France's new president Francois Hollande went to Germany to speak with German Chancellor Angela Merkel and said that he was taking different handle, he called for government spending to try and "jump start" the economy. The only catch is France is already in debt if this plans doesn't work then France will be even deep hole. Crazy? Maybe...not? Greece raised taxes and cut spending and the people protested like their world was ending (which it was).
So in conclusion things are going a little backwards. But who knows, sometimes an upside down outlook on the world is the exact outlook you need.
The austerity measures doesn't look like it will actually help the economy. We could see that France and Greece voters aren't in favour. Greece needs to find a way or it will default and cause a ripple effect. UH OH
ReplyDeleteYou're right, Greece does need to get their act together because if not it's only downhill from here... For France they need to be careful with the austerity measures because they already have human rights problems. If they keep on going the way they are, well they'll just have more human rights issues on their hands.
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