World Policy & Economy

In this article i try to make analysis and prognosis of european economy.

In the morning when i lied on my bed the news about decreasing of business grow of UK had urged me to write this post.

As i`ve being forecasted during 2 years economy of EU continues it`s falling but the closest european relative US business goes up and i predict American growth for first half-year if nothing changes. US GDP on first half-year will be 1,9 to 2,7 % or more than 2,8. Unemployment reducing will decrease the US inflation to 0,5 % from 1.63 when american economy will saturate by goods and services (http://www.tradingeconomics.com/united-states/inflation-cpi). After every returning at home of big corporations and manufactories which were declared by president of the USA mr. Barack Obama on 2011, from cheapest China US economy will more accelerate it`s step.

EU economy only holds by Germany business management in the person of chancellor mrs. Angela Merkel who at the head of EU decides the financing of european countries. But after sometime money will finish in crisis countries of european countries. Absolutely, money quickly will spend of the poorest countries which have less economic forces – finances. Nowadays only Germany is on the green zone with GDP in 1,0 %. Spain and Cyprus thinks about financial aid from EU. If situation isn`t change economic crisis will reach the cost of France, UK and last will be unsinkable German machine. As the signs i can note the reduce of credit rating of countries, especially bank rating which forms financial system and economy of the countries but mainly the financial rating of manufacturing and industrial organizations which keeps articles (buy and sell) for what exists economy.

But situation and future can be changed not only in movie of Terminator but in the life. Dissatisfaction of payment and social benefits of workers and labor unions, especially Greece not only stops the economy because of stopping of labor activity but exhausts EU financial funds. In 2013 mrs. Angela Merkel`s proposal for setting the tax for every transaction become true and without observing of the markets i sure that financial transaction become a little than other years (http://www.guardian.co.uk/business/2013/jan/22/eu-approves-financial-transaction-tax-eurozone). It`s hard to survive and even impossible for drowning man when his hands and legs are tied. So, in countries which have economic crisis which respectively in businesses too, is very hard to enlarge entrepreneurship and to hire workers. Any tax increasing will decrease the financial possibility of business which is an adobe of economy. Also, sometime it`s better to eat bread than noting. So, i think for crisis time it need to decrease social benefits and to taught citizens to have a bread than to waste the state treasuries after which government default will make to fire workers.

My second proposal concerns the movement of financial funds. A great quantity of financial credit of EU moves to settlement of debts namely for payments of workers. But how it known without working the income will not appear and man every time will ask for financial assistance (http://www.spiegel.de/international/europe/germany-and-imf-to-refuse-greece-further-financial-aid-reports-say-a-845860.html). I consider it need better to finance the biggest corporations for improving their forces to hire more workers and government manufactories. Of cause it good to have SPA and Fitness services but without goods, precisely the food, clothes and instruments of work (IT technologies and cars) is almost impossible to live.

 

 

 

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Comments

  1. Click here
    Comment by Click here | 2013/03/26 at 07:52:29 |e

    great post and valid points

    My regards, dear reader.

    Thank you for your valuation.

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