Germany is strong, and its economy is finding more space to grow; Greece is weak and the outlook is grim, countries in the European Union that use the Euro are in a crisis that the outcome cannot be correctly predicted because of the debt and deficit crisis of some.
Debt of some countries in the Eurozone is around 120% of GDP and deficit also is about 6% of GDP, the push to get off this situation is prompting sweeping austerity measures and closing innovation and exploratory space for further development. This for now is necessary as more options should be sort for balance with payments and growth.
What strikes the mind the most is what really went on before things escalated to this level, the economic recession of 2008 contributed, sure, but before that era and plunge to this present state, what buffers did countries in crisis in Europe today apply?
Europe is mostly developed and their plans take very good care of the present and the future, but countries like Spain, Portugal, Greece and Italy in this mire can possibly be blamed for some of their woes. Maybe their level of development and support that could be accessible from allies made the sleep sweet over those years when emerging economies like China and Brazil left the bed to plough.
Germany had had a foundation of trade for many years and worked hard to sustain and improve it, its auto industry, its steel industry and technologies go all over the globe in a trade that benefits the local economy strongly and makes their reserves like an obelisk amongst many economies.
Greece has a good tourism industry that sends income into the economy; Italy had and still has a good fashion industry that determines the trend around the world; these industries and their comparatively small income really do not have all it takes to build an economy on.
Innovation, production and investments from past bond sale would have helped their market strongly, penetration of African and other developing Asian economies at that time and producing so much of their consumables would have seen trade rise sharply and payment of those debts come gradually.
Pursing innovation strongly like the US and having patents that are priced would have blessed those times too. Hope is not lost as some of these grounds are still open to be conquered, as more borrowings are made to pay past ones, and government is saving from austerity measures and pensions, investments in these areas will be necessary to grow their addition to the global supply chain.
Germany, a country that did not sleep when everything looked nice are faring better than those that did; those that will out of their crisis now, pursue growth and development in new directions will begin to see a cloud of stability before the projected time. The French are working on theirs locally for labor laws, weekly working hours and retirement age, they are also looking at innovation since austerity will hardly solely help.
The Eurozone crisis is more personal than collective; countries that are on top still remain there even as policies of varying degrees are introduced to soothe the situation. The Euro will likely remain, but those that just cannot find their bearing may recognize the need to break out without force.
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