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Public Relations and the crisis with the Euro
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Euro to hold gains over December, but fall next year: Reuters poll - Reuters

Euro to hold gains over December, but fall next year: Reuters poll - Reuters | European Finance | Scoop.it

In this article, they are talking about the value of the Euro over taking the value of the dollar. In recent weeks the Euro has made strides towards more and more success, however economists are worried that it may not hold. The Euro has proven unreliable, and leaders are still worrying over Greece and Spain, the two least successful countries in the Euro.

There is a chance that the Euro value could hold strong over the next month or so because of American budget holds. The value of the dollar has consistently been dropping recently. "We remain fearful around the euro area sovereign crisis into 2013," said Paul Robson, head of European FX strategy at RBS Global Banking & Markets.

The European Central Bank is doing everything that they can to help stabilize the growth or potential failure of the Euro, however Eurpoean financial experts say that their changes will only mask problems temporarily and not get to the root of the problems.

The initially bleak predictions of the Euro have changed, however, people remain cautious. In 2013 most predictions call for a stagnation of the Euro resulting in no improvements for the euro zone countries currently in recessions. In cases such as these it is extremely important to have a knowledgeable public relations team working constantly.

As new changes are made daily it is imperative that investors as well as the general public be informed. As the case with the Euro has developed, Investor relations in this case involves not only the leaders of the countries in the euro zone but also the leaders of other countries, especially America.

Being heavily involved in the financial success or failure of the Euro, the US is in constant contact with the leaders of the EU. This constant communication is most likely fueled by a skilled team of PR professionals who are trusted to relay the information correctly.

As with any kind of investor relations it is important that information be made available at the appropriate time in order to avoid the accusation of insider trading. The Euro/American fiscal situation is a network of communication that is extremely complex and involved.

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Euro Continues Miraculous Rise As US Dollar Sinks

This post is a kind of comparison between the US and the euro zone. There has been a switch recently that we haven’t yet seen since the emergence of the Euro. It continues to rise in value while the dollar continues to decline. The value of the dollar has been declining for some time now, however it’s hit a low recently. The success of the Euro means nothing however if the unrest in Spain continues the way it is.

Voters in Catalonia are still in the process of deciding whether or not to pursue independence for the region. The independence of Catalonia would mean fragmentation of Spain, and possibly further unravel the already unstable Euro. If Spain does not stay unified, there could be catastrophic results for the Euro.

In the US we are currently trying to avoid this so-called “fiscal cliff”. Despite the markets closing the week stronger than they have been since June, there is still some worry that president Obama and congress will not be able to fix the situation fast enough to avoid further fallout for the dollar. The updates on the US markets show relatively steady growth in value of several major US companies. In situations such as these it is very important to be mindful of cyber relations in PR.

The internet is usually the first place that people will go to get their information because it is the fastest and easiest way to get it. For both the EU and the US, their fiscal PR teams need to be mindful of these facts. In Europe especially with so much turmoil, they need to be sure to generate as much positive PR as possible to avoid widespread panic. With the unrest in Spain it’s crucial to be ahead of the curve and generate your own positive PR before rumors start that could generate problems. In this case it’s critical to prevent panic about the Euro because it already has gained so much negative attention.

In the case of the value of the dollar depreciating, it is critical to make sure that the people have all the facts. In today’s society we expect immediate and accurate results. The PR team needs to make sure that all of the facts are as up-to-date as possible and as accurate as possible. In any type of PR, especially anything that has to do with money or politics, it is imperative that the people hear news first and don’t feel like they’ve been left out.

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Trichet Urges Euro Finance Ministry as Students Protest Crisis

I found this post to be particularly interesting. The students protested as the European Central Bank president spoke in October. His eight year term is coming to an end and this would mark his last speech as president. With the entirety of his career being focused on the negativity of the Euro, it’s no surprise that the students were not receptive to what he had to say.

I have heard that traditionally European students are much more intolerant of social injustices and that they will voice their opinions on an issue more readily.

This story seems to support that claim. The article said that “A woman began shouting as Trichet spoke in an auditorium at the Humboldt University in Berlin late yesterday, causing him to stop briefly before resuming. Banners were held up by students in the audience reading “no more money for the banks” and “say no to debt tyranny,” and boos were heard during applause at the end of Trichet’s speech”

This happens also in the US although it is less likely.Protesters often times are stopped before they are even allowed to start any problems and in a speech such as this, they would be escorted out if they were causing too much noise.

This is a perfect example of what can happen if the people aren’t on board with the message being heard. Throughout most of the controversy surrounding the Euro so far, I have noticed that there is little to no community relations PR.

In my opinion, there should have been a plan in place before the Euro was ever instated to ensure that the people would be in support of such an idea. I don’t believe that they would be as averse to the Euro, had the people been informed from the start.

Also as the issue has continued to worsen, the ECB should have implemented PR plans that were already in place. They have done little to gain the public’s support or approval since the crisis began last year with Greece. The prior damage cannot be undone, but they can take steps now to ensure that further damage won’t happen. .


Via Euro Zone
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Propping up euro ‘could spark meltdown’

Propping up euro ‘could spark meltdown’ | European Finance | Scoop.it

This report was just filed this past week. They talked about how Greece leaving may not have been their biggest problem. With the potential bailout looming for Spain and now Cyprus there may be big changes on the horizon for the Euro.

They said “It may seem unpalatable, but to correct the imbalances monetary union has created, an upheaval of the system may be the only option.” This statement obviously has many European citizens worried about what is to come. With the Geneva bank putting more stock in Chinese currency could it be time to let the Euro go? It seems to me that it has done more harm than good and brought several countries down.

Steen Jakobsen, the Saxo bank’s chief economist, said: “The magnitude of this debt crisis is far larger than the market realizes, so big there is no real solution as imagined by either side of the north-south divide.”

As the crisis with the Euro continues to get farther and farther away from the original plan the EU has seemed to develop a better strategy of letting their citizens know what is going on. Their PR team has most likely encouraged them to increase their transparency with the people. This would prevent any uneasiness about the way things are handled. .


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Britain 'will join euro before long', says German finance minister - Telegraph

Britain 'will join euro before long', says German finance minister - Telegraph | European Finance | Scoop.it

Britain will have to abandon the pound and join the single currency “faster than people think”, Germany’s finance minister has said.

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Feature Article: German Mercantilism and the failure of the Euro Zone

Feature Article: German Mercantilism and the failure of the Euro Zone | European Finance | Scoop.it
Watch our web conference with Herr Flassbeck here. BY Heiner Flassbeck Europe is on the brink of a potentially lethal crisis. A dozen years after the start of the European Monetary Union (EMU) the ...
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Has ‘Europe’ Failed?

Has ‘Europe’ Failed? | European Finance | Scoop.it
The European debt crisis is not just an economic crisis: it is an escalating identity conflict — an ethnic conflict.
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FAIL: Euro Finance Ministers' Meeting Ends With No Greek Package

FAIL: Euro Finance Ministers' Meeting Ends With No Greek Package | European Finance | Scoop.it
After 11 hours of talks, euro area finance ministers ended their meeting with no debt-reduction package for Greece, reports Bloomberg.

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Eurogroup chief keeps Greek bailout extension hopes alive

Eurogroup chief keeps Greek bailout extension hopes alive | European Finance | Scoop.it
ATHENS (Reuters) - Eurogroup chief Jean-Claude Juncker kept alive Greek hopes of winning more time to push through austerity cuts but warned the country was staring at its "last chance" to avoid bankruptcy.
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What America Must Learn from the Euro Crisis - Reason.com

What America Must Learn from the Euro Crisis - Reason.com | European Finance | Scoop.it

In this article, they are talking about the upcoming election and Europe’s reaction. In the article, they said that “much of Eurpoe was relieved by President Obama’s reection.” I personally am not sure what that means, however, the leaders of the euro zone believe that his reelection will prove beneficial for their fiscal health (although how they think that I’m not sure).

An article in a German news paper explained: “For the Democrats, Europe has pursued a tin-eared draconian policy of cutting deeply in the euro-zone South. The result has been economic pain and political unrest with little prospect of near-term growth. This critique holds that the current institutional set-up within the euro zone robs governments in Greece, Spain, and Italy of the policy tools necessary to animate their economies, put vast swaths of unemployed workers back to work, and, consequently, reignite growth. This stance sees the euro-zone crisis as vindication for the Troubled Asset Relief Program (TARP). “

More simply put, democrats in America believe that Austerity has failed in Europe and that the government needs to intervene. Economic stimulus is the one was to settle the unrest of the people and get the economy back on its feet.

Upon reading this article, I find it extremely misleading. It truly offers nothing but a liberal biased view of what Americans supposedly think is wrong with the Euro. It paints a picture of Americans as busy bodies who think that have all the answers. Again in situations dealing with politics it is crucial to have a PR plan in place before anything is said or done. This helps avoid misunderstanding and conflict.

Once a PR plan is implemented, it is critical to stick to it. International PR has remained relatively weak during this time despite the election. National leaders have yet to truly com together and discuss the exact fiscal policy of the Euro. Until this is done, articles like this one will continue to surface that are nothing but a biased look at American politics. .

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Why the euro zone is the greatest threat to global economic recovery

Why the euro zone is the greatest threat to global economic recovery | European Finance | Scoop.it

This article is discussing the Euro’s impact on the global economy. In it they discuss the how the Euro is acting as a weight and dragging slowing the recovery of the overall global economy. With trillions of dollars in bailouts for Greece, Spain and Italy happening, this is not surprising. Angel Gurría, the OECD’s secretary general, said a “failure to solve the euro area crisis could lead to a major financial shock and global downturn.”

The Euro crisis has gone unresolved for far too long and if it is allowed to continue, it can only lead to more problems. This article argues that the problem with the Euro isn’t lack of knowledge of what to do, it’s creating the proper policy response. Policy coordinators continue to create temporary fixes that only mask the problems instead of fixing the roots. The fear of exiting the EU is causing not only panic, but also fiscal downturn. The public is also becoming extremely uneasy and resistant to believe anything that their policy makers have to say.

The charts in this article also pain a very grim picture. Their predictions are that the Euro will continue to drag all other countries down financially. In a situation like this it is extremely important to not forget the people.

If the European policy makers fail to address the concerns of their people, then they will have major uprisings to deal with as well that could eventually lead to the dismemberment of the Euro. The political leader’s PR teams should be constantly working to inform the people and keep them appeased with information. If there is no communication between the people and the policy makers, they are much more likely to be resistant.

The PR team behind the leaders needs to address the concerns of the people and make sure that they stay informed. The many issues that surround the Euro do not need to escalate into a full blown European uprising. The failure of policy makers to fix the problems with the Euro have made the people extremely frustrated. The PR teams should be working to ensure that the public is informed so that they feel like they have a say in what is going on.

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Geneva’s Oldest Private Bank Backs China as Euro Crisis Deepens | G7Finance.com - Finance News & Personal Finance Resources

Geneva’s Oldest Private Bank Backs China as Euro Crisis Deepens | G7Finance.com - Finance News & Personal Finance Resources | European Finance | Scoop.it

This article was particularly interesting because it is talking about how one of Europe’s most well known branches of it’s oldest banks is putting their faith in another form of currency. They argue that if Greece should exit the Euro that it would cause an extreme reaction throughout all Europe. They are most concerned for a run at the banks should the Euro fail. The bank decided to put their faith in the Chinese currency.

They explain that “he Chinese currency has been the best performer of all assets since the start of the crisis.” The stable Chinese currency provides stability to the people of the EU. Again like so many articles about the failure of the Euro, they talk about how policy makers have yet to address the route of the problem. They also were unsure if Greece would exit the euro, a decision that would mean taking a 50% loss for bondholders.

This section describes the mistakes that they made when handling this situation initially: “The first big mistake was to impose losses on the private sector,” said Moulin, formerly an official at the European Commission and the International Monetary Fund. “The second — and we do not know the consequences yet — was the talks on Greece leaving the euro zone.”

These statements demonstrate clear knowledge that they made mistakes in handling the situation. This to me also shows that there was no PR plan in place when they entered into the talks about Greece. If there is no plan in place before decisions are made then there can’ be nothing but chaos. In this case I believe that they have caused the public to unnecessarily to panic because of the leaders own panic about Greece.

This is an instance where a PR team needed to be present. Now they will have to implement crisis management team to calm the public’s panic. They needed to be upfront about the entire Euro plan from the beginning. The people now have begun not only to doubt the Euro, but they are also doubting their leaders for accepting it. The EU needs to get the situation under control with good PR before it gets out of control. 

 


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You're Dreaming If You Think The Euro Crisis Is Resolved | Finance

You're Dreaming If You Think The Euro Crisis Is Resolved | Finance | European Finance | Scoop.it

The German edition of Der Spiegel opens the new week on Monday morning with a series of articles on the European situation, which make clear, as if that were still necessary, that Europe is still an absolute mess. You know, just in case you thought it was not. That Mario Draghi's latest unlimited whatever it is had somehow chased away the demons.

An article in a German news paper explained: “For the Democrats, Europe has pursued a tin-eared draconian policy of cutting deeply in the euro-zone South. The result has been economic pain and political unrest with little prospect of near-term growth. This critique holds that the current institutional set-up within the euro zone robs governments in Greece, Spain, and Italy of the policy tools necessary to animate their economies, put vast swaths of unemployed workers back to work, and, consequently, reignite growth. This stance sees the euro-zone crisis as vindication for the Troubled Asset Relief Program (TARP). “
More simply put, democrats in America believe that Austerity has failed in Europe and that the government needs to intervene. Economic stimulus is the one was to settle the unrest of the people and get the economy back on its feet.
Upon reading this article, I find it extremely misleading. It truly offers nothing but a liberal biased view of what Americans supposedly think is wrong with the Euro. It paints a picture of Americans as busy bodies who think that have all the answers. Again in situations dealing with politics it is crucial to have a PR plan in place before anything is said or done. This helps avoid misunderstanding and conflict.


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The Failure of the Euro

The Failure of the Euro | European Finance | Scoop.it
The collapse of the euro is no accident; the seeds of the crisis were planted before the monetary union even began, argues a former chair of the Council of Economic Advisers.
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The Failure of the Euro Experiment in Two Charts

The Failure of the Euro Experiment in Two Charts | European Finance | Scoop.it
Greece outgrew Germany and enjoyed rock-bottom interest rates.
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Euro Zone Finance Ministers Meet, Again, to Grapple With Greece - NYT

Euro Zone Finance Ministers Meet, Again, to Grapple With Greece - NYT | European Finance | Scoop.it

Euro Zone Finance Ministers Meet, Again, to Grapple With GreeceNew York TimesEuro zone finance ministers are to gather in Brussels on Monday for their fourth meeting in four weeks.


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Euro Hits Seven-Week High, JGB Yields Fall on Cliff - Bloomberg

Euro Hits Seven-Week High, JGB Yields Fall on Cliff - Bloomberg | European Finance | Scoop.it
Euro Hits Seven-Week High, JGB Yields Fall on CliffBloombergThe euro touched its highest in seven weeks and Japan's government bonds gained as U.S. President Barack Obama said Republicans must accept higher taxes as a condition for a budget deal.
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Some Saturday Euro Crisis Readings - Forbes

Some Saturday Euro Crisis Readings - Forbes | European Finance | Scoop.it
This week was dominated by Thursday’s ECB Governing Council meeting and Mario Draghi’s subsequent press conference. Financial markets initially hated Draghi’s comments.
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