Eurozone Financial Crisis: Latest News
After the Global Financial Crisis some of the hardest hit economies were of Europe. The Sovereign Debt Crisis, the fears of a default by some of the countries in Europe and the severe unemployment in countries like Spain and Greece were some of the major crisis that the European region have faced financially over the last few years. But what is the current situation of the economy of Europe. In 2014, is Europe on the right path of recovery or is there still a financial crisis in Europe?
European Economy: 2014
Europe is a diverse economic region with some countries doing substantially better than the others. Countries in the Northern regions of Europe tend to do better than those in the East and the South of Europe. There are some countries that are showing a good sign of recovery while others are still struggling in recession or on the verge of recession. The economic recovery of Europe is being viewed as weak and fragile. The momentum of growth has slowed down in the European region. The latest financial news from the region is that Italy which is a large economy in Europe has slipped back into recession. Also unemployment rates in major European economies are still very high. Spain, Ireland, Greece and many of the eastern European countries have very high unemployment rates. The inflation rate in Europe has slipped from what was expected this year and there are various external geo-political challenges that are having a negative impact on the European economy.
Geo-Political Situations Hurting the European Economy
There is a full crisis in Ukraine in Eastern Europe today. A part of Ukraine and Crimea was annexed by Russia earlier this year. There have been increased tensions between Ukraine and Russia over the past year. The West, which means countries in Europe and the United States have sided more or less with Ukraine and this, has increased tensions between Russia and the West. Russia has a strong economic relationship with Europe. It supplies energy resources to many countries in Europe. Also Russia and Europe do billions of dollars in trade every year. Economic Sanctions levied on Russia by the West and the retaliatory sanctions levied by Russia are a major cause of concern for the economy of Europe. Besides this crisis, the situation in Iraq and Libya along with some negative economic data coming out of developing countries contributes to the fact that the financial crisis is not yet full over in Europe.