Euro Crisis

Hello! In this post I'll talk about Euro Crisis.


The world has been shaken by the debt crisis of the Europe countries. The Old World, cradle of Illuminism, Renaissance, and Industrial Revolution, ensured, in front of the world, the status of a region of high economy development and social welfare, but, the image built over centuries, is now associated with marked turbulence.


The impacts of crisis are large and we can clearly see in the world, like the high unemployment, declining sales and a reduction in spending. Just to get an idea, last week, I read a news that even the famous Nobel Prize winners, will face a cost-cutting, of 20% in the values of the awards.

The crisis that in the beginning was financial ( resulted from the impact of U.S. crisis on European banks) became fiscal, by the expenses incurred by the government to prevent unemployment, and it is today, politic, because the failure to pay, leads to a disagreement between the government and creditors ( in Europe, five governments have already fallen. Greece, Spain, Ireland, Italy and Portugal).

 Most countries are included in this economic impact, because of the globalization, there is a relationship, of interdependence between governments, an example is the foreign capital injected into the investments that, due to crisis, subsided, weakening the general economy. The spanish banks have announced losses from unpaid loans, in the same way, are Germany, France and Belgium. Economists says that is far from a solution. 

Here in Brazil, measures to face the crisis are being taken, one in particular was the reduction of the IPI ( tax on industrialized products ). According to the minister of finance, the reduction stimulates the economy and avoid layoffs.
The Minister' intentions looks good, but it's important to remember that the price reductions, and "facilities" in the purchase are only to avoid a crisis in the economy, we must not act reckless, buying without the actual need, because it would cause non-payment, wich is exactly what we are fighting against, to improve the economy.

So, is important to be prepared for the crisis, and the "temptation" to which the government offers us too (as the low prices), so that we are not victims of our own acts.





Luiz O.

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