Monday, January 2, 2012

Euro 10th birthday without Celebration

Leaders admitted that the situation in 2012 will be even more difficult.

German Chancellor Angela Merkel and French President Nicolas Sarkozy

Euro celebrate its 10th birthday

Europeans in the New Year ushered in 2012, also witnessed the 10th anniversary of the birth of the euro's history. This should be celebrated in these “double happiness” days, but the euro is experiencing a most serious crisis. Facing a decade that has been accompanied by a common currency, the euro area countries can be described as a complex tangle of mind.

Integrated media reported on January 2, the leaders of the euro area member states are mentioned in the New Year's speech, the euro area economy in 2012 will be challenging,
and becoming more difficult. Among them, the leaders of Germany and France admitted that the economic crisis in 2012 will be exacerbate rather than eased.

German Chancellor Angela Merkel said in his speech, Europe still does not solve the debt crisis, 2012 will be a tough year. However, she believes, have the ability to weather the crisis in Europe, despite the "road is long and tortuous."

French President Nicolas Sarkozy said in his speech in the New Year, 2012 will be full of "challenging" year, but he solemnly declared that France would not be affected by political or rating agencies dominate the market. Sarkozy said the global economy in 2012 will be a challenging, full of variables, but the difficulty is bigger, the French have the confidence to
face the big challenge, France will firmly meet it.

January 1, 2002, the currency used as invisible after 3 years of financial market transactions, the euro banknotes and coins to the physical form of formal entry into the daily circulation.
After 10 years, the euro area has been expanded to 12 countries in the first 17 countries, with a population of over 330 million in currency in circulation has reached 870 billion Euros.

Euro in the course of 10 years to produce the report card are some bright spots: to become the world's second largest after the U.S. dollar's reserve currency; By eliminating exchange rate risk effectively promote trade between the euro area member countries; low interest rates reduced the euro area economic activity within the financing costs; single currency was seen as an important symbol of European integration process and results.

But since the end of 2009 the Greek sovereign debt crisis broke out, this "credit plague" continues to spread to other European countries, the euro began to shake the status of affected, "the failure on the euro," along with rampant. Especially from the evolution of the debt crisis in Europe last year, the European leaders still failed to prevent the spread of the debt crisis and build a solid firewall enough that the debt crisis spread from the periphery of Europe to the core countries such as Spain and Italy.

Just a few days ago, the euro fell against the yen exchange rate lowest in 10 years, against the U.S. dollar also hit a 16-month low, the market was filled with bearish euro sentiment. European debt crisis of the European member states are also highlighted differences between the serious economic policy, cooperation is not enough.

In short, the age of 10 years the fate of the euro has now reached
a crossroad, then go no doubt the Europeans will test the courage and wisdom.

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