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

Video Protests Continue in Ferguson, Spread to Other US Cities

Missouri officials say deployment of more than 2,000 National Guard soldiers helps curb second night of rampant arson and looting in Midwestern town More

Video Ebola, Crackdown on Illegals Hit Business in Guangzhou

Chinese city has largest community of Africans in Asia More

Video Legendary Lebanese Actress, Singer Sabah Dies at 87

Music and film diva, affectionately called 'Sabbouha' by millions of her fans, performed at Carnegie Hall in New York, Royal Albert Hall in London, Olympia in Paris, Sydney Opera House in Sydney More

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.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid