Llnh nguyen

rof Sarah LsveldL

8uS101 C
november 18
Lh
2011
Ass|gnment #7
Luro uebL Worrles ShlfL Lo Spaln and lrance" an arLlcle publlshed on november 17
Lh

2011 on new ?ork 1lmes onllne magazlne by uavld !olly sLaLes Lhe flnanclal flucLuaLlon among
Lhe 17 euro naLlons as Spaln lLaly and lrance are now havlng a dangerous raLe of debL
lnLeresLs lrance has Lo pay 28 percenL Lo sell bonds maLurlng by !uly 2016 lLaly's debL lucklly
has decreased Lo 679 percenL and Spaln has a 10year debL amounL of 36 bllllon euros and
has Lo pay 697 percenL 8ottowloq costs obove 6 petceot ote cooslJeteJ Jooqetoosly blqb
ooJ ot 7 petceot ote cooslJeteJ oosostolooble ovet tbe looqet tetm" quoLed uavld
Cne oLher polnL of Lhe happenlng crlsls ls because of Cermany's refuLaLlon Lo [oln euro
zone bonds no maLLer many economlsLs have predlcLed LhaL Cermany agreemenL Lo use Lhe
Luropean CenLral 8ank could lead Lo a sLrong bolsLer for Luropean llnanclal SLablllLy laclllLy
tbe molo eoto zooe bolloot veblcle" 1haL makes even 8rlLlsh Lo be worrled as looJoo
bookets olso ote flqbtloq o JetetmloeJ bottle oqolost tbe lmposltloo of o tox oo floooclol
ttoosoctloos"
Charles ulebel head of markeL sLraLegy aL Lloyds 8anklng ln London flnds LhaL Lhe besL
soluLlon for such crlsls ls brlnglng flscal pollcles among Lhose counLrles as soon as posslble
however lts oot qoloq to be o pololess ptocess ltbet tbey move towotJ qteotet loteqtotloo ot
lts botJ to see tbe eoto sotvlvloq" sLaLed Mr ulebel
ln my oplnlon Lhe key polnL ls managlng Lo convlnce Cermany 1hough boLh lrance and
London are urglng Cermany can hardly agree Lo [oln Lhe euro zone bonds as Cerman
governmenL's Chancellor Angela Merkel sald ln her speech" l om coovloceJ tbot oooe of tbese
opptoocbes woolJ btloq oboot o solotloo of tbls ctlsls lf polltlcloos belleve tbe c8 coo solve
tbe ptoblem of tbe eotos weokoess tbeo tbey ote ttyloq to coovloce tbemselves of sometbloq
tbot woot boppeo" l Lhlnk she made her own polnL on behalf of Lhe whole counLry Lhough as
Lhe debL raLes of lLaly lrance and Spaln are way Loo hlgh so [olnlng ln Lhe euro zone bonds can
posslbly brlngs LhreaL Lo Cermany