News / Europe

    Europe Ushers in New Year With Worries Over Economic Future

    German Chancellor Angela Merkel (file photo)
    German Chancellor Angela Merkel (file photo)
    Stefan Bos

    Europe has ushered in the New Year amid warnings from European leaders there are tough tasks ahead to save the euro currency and overcome the deepest economic crisis in decades.  

    Europeans woke with a hangover from 2011, when their continent plunged into its deepest economic crisis in decades.

    Government leaders struggled to sound optimistic for the new year, with French President Nicolas Sarkozy warning Europe's financial struggles are not finished and "that 2012 will be the year full of risks, but also of possibilities."

    Europe's largest economy, Germany, is expected to play a leading role in fixing mounting multi-billion-euro debts.  Germany has been involved in desperate efforts to prevent the collapse of the 17-country monetary union.

    In her New Year's address to the nation, German Chancellor Angela Merkel acknowledged she expects turbulence in 2012.

    Speaking on national television, Ms. Merkel says overcoming these difficulties will not be without setbacks, but "at the end of this path Europe will emerge stronger from the crisis than before."  She pledges to do everything to defend the European currency and to help solve the debt crisis.  She says the euro has made "everyday life easier and the economy stronger."

    The chancellor is to meet with President Sarkozy in Berlin this month to discuss revisions to Europe's fiscal rule book, with a final accord by European leaders on the German-French proposals in March.

    EU members that do not use the euro also face economic and political uncertainties this year.

    Among those worst hit is Hungary, after major credit agencies Moody's and Standard&Poor's downgraded its debt to the non-investing "junk" status.

    In addition, many Western nations are concerned about Hungary's new constitution and laws introduced on New Year's Day.  Critics claim they amount to a government take-over of the Central Bank, private pension funds, and other previously independent institutions.

    In Budapest, Hungarians briefly tried to forget these worries.

    Wearing 2012 eye glasses, parties erupted in downtown Budapest, with massive fire works and dancing crowds.

    Yet elsewhere in town, thousands gathered in front of parliament to demonstrate against "the end of democracy."  They included journalists who have been on hunger strike to protest alleged government interference in news programs.

    Political analyst Peter Kreko of Budapest based research group Political Capital told VOA News Prime Minister Viktor Orban's policies have angered the International Monetary Fund and it is unlikely to provide a $26 billion safety net requested by Hungary.

    “The outcome of this whole situation can be that we simply will not be financed by the IMF and the EU and it can have serious consequences for Hungary.  There is just one escape route of the government.  They expect that if we will not get a loan package that we can use the reserves of the Central Banks, but it can last for just a view more months," he said.

    For some hopeful words, Catholics in Hungary and around Europe turned to Pope Benedict XVI, who marked the end of 2011 with televised prayers of thanks.  He said humanity awaits the New Year with apprehension, but also with hope for a better future because "the Lord watches" and "takes care" of everyone.   

    You May Like

    Multimedia US Observes Memorial Day With Wreath-laying, National Concert

    Obama lays a wreath at the Tomb of the Unknown Soldier in Arlington Cemetery

    The Strife of the Party: Will Trump Permanently Alter Republicans?

    While billionaire mogul's no-holds-barred style, high-energy delivery are what rocketed him to nomination, they also have created rift between party elites and his supporters

    China's Education Reforms Spark Protest

    Beijing is putting a quota system in place to increase the number of students from poor regions attending universities

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora