Financial crisis in Eurozone maintains its pressure in recent years, like contagious diseases, spreading from one to other in the continent.
The wind of change which has been experienced across the world, especially showed its effect in the economics.
When the developments are analyzed; seemingly the world economy had been caught unprepared, regarding globalization that persists its effects on the world.
The euro zone financial crisis which does not drop from the agenda maintains its destruction effects with every passing year, and one of the countries of the zone is dragged into the economic crisis chain year after year.
Damage from the 2008-2009 global financial crisis and then euro zone debt crisis has been greater than expected on the real economy.
Beginning with Greece, Portugal, Ireland, Italy, and Spain, nowadays Greek Cyprus has undergone into crisis. Furthermore, it is said that France and Belgium try to cope with the financial ailment.
The five countries of the region have to varying degrees, failed to generate enough economic growth.
Five years after the beginning of the global financial crisis, even reform of the financial sector had advanced, but the causes of that crisis had not yet been resolved. The bad results of the crisis have been maintaining their effects.
According to a research, the financial crisis is not only being reflected in many Europeans’ wallet, their health is suffering as well. The diseases which are thought eradicated from Europe, since the beginning of the crisis, the diseases such as dengue fever and tuberculosis are reemerging regarding shrinking healthcare budgets, in addition to the number of death is on rise. Also number of suicides had raised in crisis-stricken countries, since Europe’s debt problems came into focus in 2008-2009.
Although these five countries were seen as being the countries in immediate danger of a possible default; furthermore, it is remarked that the crisis could have far-reaching consequences that extend beyond their borders to the world as a whole.
According to the head of the European Investment Bank (EIB), they did not expect the euro zone to emerge from its debt crisis within the next two years.
The 17-nation bloc’s economy which generates some a fifth of global output expected will shrink 0.3 percent in 2013. So euro zone will remain in its second recession since 2009.
The commission sees the euro zone economy growth would be 1.4 percent in 2014.
Meanwhile, Belgium, France, Luxembourg and the Netherlands have been struggling with stagnation since 2011.
“In Belgium, the people are now losing their jobs. Companies had postponed the crisis for a couple of years. But now they have used all their reserves and there is no space left of keep the people employed.
Belgium is one of the core countries of Europe, a founding member of what became the EU. Yet even here it is predicted that 2013 will be a year of stagnation. Last year, bankruptcies hit record levels,” according to the source.
In 2013, joblessness in the euro zone is expected to peak at 12.2 percent or more than 19 million people.
While the banks are going bankrupt and businesses are being shut down, economies are shrinking; joblessness is growing, the question that comes to mind what is the dimension of the euro zone crisis; after South Cyprus which country is on line?
As for the German Finance Minister Wolfgang Schaeuble said, “I believe that we will one day read in the history books about this period that the crisis brought Europe even closer together” adding that the continent was currently enjoying a very fortunate era.
Finally in this global change, the world economists and officials could not be able to apprehend the results of this huge change!