Germany has been reported to not expect a easy breakthrough in the euro zone’s sovereign debt crisis. The representatives of Germany have suggested that the plan which had been formulated to solve the issue at hand would take much time to properly implement as there are many obstacles in doing such things as forming a plan to help strengthen European banks. This summit hopes to produce a solution to Greece’s debt crisis. So far it has been suggested that banks need to increase their contribution because more private investment is needed for a second Greek bailout.
In the related NY Times article there was talk of American officials blaming Europe for America’s economic hardship. It was said that the continuing sovereign debt crisis would only add to the hardships of the American economy. However, European officials offer their rebuttal saying that the financial crisis originated from Wall Street and as such Europe should not be criticized for its current predicament.
America and Europe needs to stop blaming each other for the cause and effect of the crisis but instead focus on finding the solution to fix the crisis. There are a lot to do and the solution the summit suggested was once used to bailed out private investment firms in the America. I think this is a short term solution if it happen.
ReplyDeleteWell, while long term solutions are always desirable it sounds like Europe needs to be looking at short term solutions as well. With Italy and Spain hanging in the balance the whole world should be watching carefully. Should Greece's situation be handled poorly it will end badly for everyone's economy, regardless of who is at fault.
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