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Latest news about the EMU and the situation in the eurozone
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Downgrade raises pressure on Madrid to accept bailout

Downgrade raises pressure on Madrid to accept bailout | European Monetary Union | Scoop.it

The credit rating agency Standard & Poor's has downgraded Spain's debts two notches since the heavy collapse in its fortunes means that its recession will be longer and unemployment higher than expected. The agency mean that the capacity of Spain's political institutions to deal with severe challenges due to the current economic and financial crisis is declining and therefore a downgrade is necessary. Other ratings agencies are expected to follow S & P's actions.

Spain's economy is rapidly shirnking and their banks are struggling since the real estate market has collapsed. The ECB (European Central Bank) has agreed to buy Spanish government bonds in order to lower borrowing costs but first, the government has to apply for a bailout either from ECB or Brussels in order to prevent further rating downgrades. 

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Greece has not faced up to the ghosts of its past

Greece has not faced up to the ghosts of its past | European Monetary Union | Scoop.it

As Angela Merkel, during her visit in Greece this week, makes a futile attempt to prop up Greece's political class, the country is on the brink of self-destruction. On of the forseeable blowbacks of the crisis in Greece has been the expanding rise of racism and xenophobia. Greek residents are turning on "immigrants" who have lived in the country for over 20 years. Kids are accusing their jobless situation on Asians and Middle east people their own age. Greeks are also showhing their dislike towards the rest of Europe which you could see at the this week's anit-Merkel protests in Athens. The symbolic purpose of Merkel's visit was to bring the country back into the mainstream European fold and prop up a mercurail political class but the author is questioning if the people so centrally implicated in the country's fall (like Merkel) take on the role of its saviour? 

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Christine Lagarde: act bravely together to save world economy

Christine Lagarde: act bravely together to save world economy | European Monetary Union | Scoop.it

Head of International Monetary Fund, Christine Lagarde, spoke on the Tokyo Conference this week. She called on governments to co-operate to heal the broken global economy in order to prevent a further slowdown in economic growth. She means that policymakers has to take immediate action to resolve issues of bank saftey etc hanging over from the previous financial crisis. Only swift action can end the uncertainty that is hitting economies around the world. Oxfarm's research shows that a Eurozone break up would cost the world's poorest countries $30 billion in lost trade and foregin investment. This makes it even more important that Europe's crisis get fixed or the fallout will threaten devoloping countries. 

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IMF and Europe in dangerous game of brinkmanship over failing Greek bailout

IMF and Europe in dangerous game of brinkmanship over failing Greek bailout | European Monetary Union | Scoop.it

Showdown between IMF and the eurozone likely to come to a head next month when report set to confirm Greece's debt could hit 145% of GDP by 2020 on current trends. IMF insists that the eurozone and ECB resort to a new policy that will lead to a writedown or writeoff of the Greek debt to its official creditors which ECB and the German government are resisting firecly. 

Without  a bailout disburstment of over €30 billion next month Greece will go bankrupt. It is most likley that they will recieve this bailout since neither the eurozone or Washington wants to let Greece go bankrupt or leave the common currency since this would have enourmus effects on the stability of the global economy. But they want to, as with most decitions in EU, wait as long as possible whereby they are waiting for the troika report on Greece that they will recieve next month. 

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