“As the
battle between Greece and the Eurozone over austerity measures and
debt repayment plans continues, there are fears that Finland could be
the 'next Greece', with experts concerned the Finnish economy could
also crash, sparking fears the euro is heading for an economic
catastrophe. Despite some economic data suggesting the Eurozone is
well on the way to recovery, leading British economist Roger Bootle
is far less optimistic about the economic prospects of the bloc, and
in particular, the future of the euro single currency.”
“...
while the individual economies of Germany of France recorded small
growth, equivalent figures for Spain, Portugal, Italy and Greece were
minus 6.4 percent, 7.3 percent, 9.5 percent and 26 percent
respectively. The astonishing drop in productivity, particularly in
Greece, is even more concerning when contrasted with the economic
performance of other non-Eurozone European economies such as Norway
and Switzerland, which grew by 6 percent and 8 percent over the same
time period. This data, combined with further analysis of booming
Asian markets, has led many to question whether the concept of the
single European economy is doomed.”
“Some
analysts have argued that other stronger Eurozone economies were well
aware of the true extent of Greece's economic problems but didn't
raise the alarm, because it has been suggested that they would
ultimately benefit from having weaker nations as part of the
currency. As the negotiations continue between Greece and other
eurozone officials, there is a growing thought among economists that
Athens may in fact leave the bloc.”
“An
additional concern is the growing economic state of Finland, with
Finnish opposition leader Juha Sipila warning the country could be
the next Greece and may face an economic crash. With close to one in
five people unemployed, Finland is the latest Eurozone country facing
an economic crisis, with rising labor costs, a diminishing workforce
and a reduction in exports to Russia contributing to three years of
recession. Everyone in the EU is worried about the economy and
financial situation, forgetting about the importance of geopolitics,
and that could be the downfall of the union, according to French
journalist Coralie Delaume. There are fears these problems could
trigger a crash in the Finnish economy and potentially a 'lost
decade' for the country, as parliamentarians try and agree on what
reforms to introduce to reverse the concerning trend.”
Blog
comment: Reducing labor costs will only make things worse as
it happened in Greece, especially in a small market like Finland.
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