News / Europe

    Europe's Economic Crisis Intensifies

    A stock exchange monitor displays the market trends in Milan, Italy, November 9, 2011.
    A stock exchange monitor displays the market trends in Milan, Italy, November 9, 2011.
    Lisa Bryant

    Europe's financial and political problems deepened, as stock markets tumbled, Italian bond yields rose over the political turmoil in Rome, and a new coalition government prepares to take over in Greece.

    Related video report by Mil Arcega

    The eurozone crisis has risen another notch with Italy's government heading for the door, stock markets plunging and Greece in crisis.

    Outgoing Greek Prime Minister George Papandreou announced agreement with opposition lawmakers on a new coalition government that likely will have to carry out austerity measures demanded by the country's international creditors.

    And, after hanging on for weeks, veteran Italian Prime Minister Silvio Berlusconi now says he will resign and not run for office again.  President Giorgio Napolitano must either work on forming a new government or call early elections.

    Rome becomes the latest casualty of the financial crisis that already has brought down the governments of Portugal, Ireland and Greece.  But as Europe's third-largest economy, Italy's skyrocketing debt and deficit are viewed as far more serious.

    Analyst Ben May, with London-based Capital Economics, said it will take more than political change to put Italy on a healthier path.

    "It is not just that the current government is not up to the job, but Italy has huge structural problems that are going to take years to resolve," said May. "And that, given that backdrop, it may well be very difficult for Italy to get its debt on a stable footing either without huge amounts of assistance from abroad or some form of a deal."

    Eurozone countries are now scrambling to build a firewall to contain the spreading debt crisis. In an interview on France's RFI radio, French Foreign Minister Alain Juppe said the goals were clear.

    Juppe said it was out of the question for Europe to abandon either the 17-nation eurozone or the euro. His remarks appear targeted at speculation that Greece could leave the currency union.

    The fast moving events have left analysts like Janis Emmanouilidis, of the Brussels-based European Policy Center, uncertain about where Europe is headed.

    "What is obvious is that the crisis has again reached a new level, a new phase. At the same time we are seeing E.U. member states,  especially Berlin and Paris, Germany and France, ready to act more boldly than they have this summer... At the same time, we do not know whether this crisis has reached a size in which it has become unstoppable or whether we are in a way in the final phase of it," said Emmanouilidis.

    Greece's new coalition government must meet EU terms for a new installment of aid by December. After that, Greek officials say, they will be unable to pay their bills.

    You May Like

    US Internet Giants, EU Reach Deal to Combat Online Hate Speech

    Facebook, Twitter, Google and Microsoft commit to ‘quickly and efficiently’ act to clamp down on use of social media to incite violence, terror

    Video Tunisia’s Ennahda Party Begins a New Political Chapter

    Party now moves to separate its political and religious activities; change described by party members as pragmatic response to political and economic challenges facing Tunisia today

    Virtual Reality Fine-tuned at Asia Tech Show

    Microchip designers hope to improve resolution for users of systems that can turn your bedroom into the ocean floor

    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.
    Tech Startups Showcase Wares at Amsterdam Conferencei
    X
    Serginho Roosblad
    May 30, 2016 5:11 PM
    More than 20,000 tech enthusiasts, entrepreneurs and lovers of digital technology came together in Amsterdam recently at the Next Web Conference to discuss the latest developments in digital technology, look to the future and, of course, to connect. In recent years, there has been an explosion of so-called startup businesses that have created devices and applications that have changed the way we live; but, as Serginho Roosblad reports for VOA, there are pitfalls for such startups as well.
    Video

    Video Tech Startups Showcase Wares at Amsterdam Conference

    More than 20,000 tech enthusiasts, entrepreneurs and lovers of digital technology came together in Amsterdam recently at the Next Web Conference to discuss the latest developments in digital technology, look to the future and, of course, to connect. In recent years, there has been an explosion of so-called startup businesses that have created devices and applications that have changed the way we live; but, as Serginho Roosblad reports for VOA, there are pitfalls for such startups as well.
    Video

    Video US Military's Fallen Honored With Flags

    Memorial Day is a long weekend for most Americans. For some, it is the unofficial start of summer -- local swimming pools open and outdoor grilling season begins. But Memorial Day remains true to its origins -- a day to remember the U.S. military's fallen.
    Video

    Video Rolling Thunder Rolls Into Washington

    The Rolling Thunder caravan of motorcycles rolled into Washington Sunday, to support the U.S. military on the country's Memorial Day weekend
    Video

    Video A New Reading Program Pairs Kids with Dogs

    Dogs, it is said, are man's best friend. What some researchers have discovered is that they can also be a friend to a struggling reader. A group called Intermountain Therapy Animals trains dogs to help all kinds of kids with reading problems — from those with special needs to those for whom English is a second language. Faiza Elmasry has more on the New York chapter of R.E.A.D., or Reading Education Assistance Dogs, in this piece narrated by Faith Lapidus.
    Video

    Video Fan Base Grows for Fictional Wyoming Sheriff Longmire

    Around the world, the most enduring symbol of the U.S. is that of the cowboy. A very small percentage of Americans live in Western rural areas, and fewer still are cowboys. But the fascination with the American West is kept alive by such cultural offerings as “Longmire,” a series of books and TV episodes about a fictional Wyoming sheriff. VOA’s Greg Flakus recently spoke with Longmire’s creator, Craig Johnson, and filed this report from Houston.
    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.

    Special Report

    Adrift The Invisible African Diaspora