News / Europe

Europeans Brace for Hard Times, Economic Woes

TEXT SIZE - +

As economic crises intensify in Europe, governments are cutting budgets and ordinary people are tightening their belts.  Even richer countries, like the Netherlands, are bracing for hard times to come. 

Amsterdam's residents took full advantage of the past week's unusual warm and sunny days, setting out chairs alongside the city's many canals to drink and talk.  Others, like 32-year-old Sam Van de Pol, wandered through outdoor markets, checking out stands selling cheese, clothes or vegetables.

Van de Pol is bracing for stormier weather. Not the impending winter, but chances that economic growth in prosperous Netherlands may slow down.  He is out of work, and fears his unemployment benefits may shrink next year.

"And even if it's not so much consequences for me, I'm already in the system, there will be some serious consequences for the people who are not in this position and who need this kind of help," he said.

Fall out of eurozone's financial crisis

Protesters shout slogans during demonstration in Athens, Greece, October 5, 2011.
Protesters shout slogans during demonstration in Athens, Greece, October 5, 2011.

While tough austerity measures in debt-strapped Greece have sparked massive protests, the fallout of the eurozone's financial crisis is beginning to be felt elsewhere.

Banks in Germany and France that have lent massive amounts to Greece, Portugal and other struggling economies are beginning to teeter.  Fears are growing that taxpayers in richer nations like the Netherlands will be bailing out poorer ones.  And a slew of recent forecasts, including one by the International Monetary Fund this past week, are revising down growth estimates across the 17 nations that use the euro currency.

Even countries outside the eurozone, like Britain, are passing austerity budgets.  In an address to his party this week, British Prime Minister David Cameron tried to rally Britons for the hard times ahead.

"I know how tough things are," he said.  'I don't underestimate for one minute how worried people feel - whether that's about making ends meet or the state of the world economy.  But the truth is, right now we need to be energized, not paralyzed, by gloom and doom."

Uncertain future

In France, Parisians like 45-year-old business owner Marc Bakous are uncertain about the future.

The problem, Bakous says, is that nobody knows what's going on.  The government doesn't say much. People are afraid; they don't know how the government is going to get out of the larger financial crisis.

Like Britain, France also is cutting spending, an unpopular move just a few months before presidential elections.  Opposition parties have been quick to criticize a new 2012 austerity bill introduced by President Nicolas Sarkozy's conservative government.

In an interview on French radio, leading presidential hopeful Martine Aubrey of the opposition Socialist Party said that while France's budget deficit needs to be reduced, the country also needs economic growth, jobs and more competitiveness.

Vivien Pertusot, head of the Brussels office of the French Institute for International Relations, says these concerns are reflected elsewhere in Europe.

"People are increasingly realizing that the crisis is going to be hitting very, very hard.  It's been difficult already, but it's going to be more difficult in the coming months and the coming years.  This is something everyone understands and fears," said Pertusot.

In Amsterdam, the financial crisis still feels very far away.  Some Dutch, like Joris Montens, who owns an art gallery, also feel stronger for having survived the last economic downturn, in 2008.

"My first experience in selling art was to law firms and other kinds of enterprises, who just in the downturn of 2008 decided not to buy art any more.  If a company has to let go of 20-30 persons, then it's not the best time to invest in art," Montens.

But Montens got creative, handing out flyers door to door to attract new customers to his gallery.  Today, he believes the solution to Europe's financial crisis is not just an economic one, but a human one.  He believes richer Europeans should help out poorer ones, and ensure that the fundamental concept of a European Union survives.

You May Like

Experts Weigh In on Challenges of Closing Guantanamo Prison

Former chief military prosecutor at Guantanamo delivers petition to White House with more than 370,000 signatures, demanding facility be closed down immediately More

Karzai to Discuss Enhancing Defense Ties with India

Afghanistan looking for more military aid as it prepares for withdrawal of NATO forces by next year More

India, China Pledge to Overcome Border Tensions

Indian prime minister and Chinese premier attempt to move past tense standoff in the Himalayas during Delhi talks More

Burmese President Opens US Visit with VOA Town Hall Meeting

Ahead of his meeting with President Obama Monday, Thein Sein answered questions on human rights and economic development in his country 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.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video

Video US Oil Surge Could Impact Mideast Geopolitics

The United States will account for a third of new oil supplies over the next five years, and will become energy self-sufficient in 20 years, according to a new report by the Paris-based International Energy Agency (IEA). Although U.S. oil imports from Arab Gulf countries increased last year, analysts predict the U.S. will lose its dependence on Middle East imports, which is expected to have a huge impact on international relations and the balance of power. VOA's Henry Ridgewell reports.