Archive for the ‘Europe and financial crisis’ Category

Iceland to seek EU membership

Wednesday, June 17th, 2009

Having your country pulverised by a financial crisis and near bankruptcy is a good way to change your mind about EU membership. Iceland has long enjoyed all the benefits of the EA but is not an official member. They value their own fishing and farming laws and have not need the Euro currency, up until now. Following the collapse of their economy and the near zero value of their currency they are seeking a economic change. They hope adopting the Euro will have them back in the game even if it means that they will have to give up their fishing freedoms.

Eastern Europe to slowdown even more

Wednesday, June 10th, 2009

Going from bad to worse, Eastern Europe already reeling from a credit crunch and lower demands for their exports have just been hit with more bad news. The forecast for the rest of 2009 sees the slow down continue. The World Bank expects to dish out more money to save Eastern European nations than ever before. It has already shelled out more than 1.3 Billion Euro to Hungary as part of its 25 Billion Euro bailout package. The World Bank expects relief funds to double from 4.2 Billion which it gave last year to 8.4 Billion for the region.

East could topple whole EU

Wednesday, May 27th, 2009

With the looming risk that one of the Eastern European countries that got hit real bad in the crisis could go bankrupt there is speculation that it could bring down the whole EU with it. Should one in the east fall it would mean that some country in the west would take a huge hit in owed debt. That could be the start of a whole EU break up as nations try to figure out how to deal with all the bad debt. That would cause an instability in the Euro which would further hinder many nations that would already be suffering.

Netherlands undecided on stimulus packages

Wednesday, May 13th, 2009

Jan Peter Balkenende, the Dutch prime minister, recently said that EU governments were under “intense pressure to use scarce tax revenues mainly for our own countries”. Netherlands is one of many European countries not keen to dish out tax money for a stimulus package that may or may not work. The government leaders seem to be in disagreement on if and how to make a workable financial package. They are trying to keep all wages in tact and taxes coming in while maintaining all their social programs.