What’s on economy these days…???

Inflation petrol prices all time high and European zone debt crisis..Most importantly RBI hiking rates again and again and because of that we see share markets coming down and almost all the industries in the country are getting affected.

First of all if we’l talk about European sovereign debt crisis or Greek Debt Crisis particularly.

In 2010 the debt crisis was mostly centered on events in Greece followed by Ireland and Portugal the most..they have 'credibility problem', because they lack the ability to repay adequately due to their low growth rate, high deficit, less investments etc. On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed to a €110 billion loan for Greece, conditional on the implementation of harsh Greek austerity measures. The Greek bail-out was followed by a €85 billion rescue package for Ireland in November, and a €78 billion bail-out for Portugal in May 2011.

If we see the present situation Greece’s 18-month sovereign debt crisis brought the government to the brink of collapse.

Along with that the fall of the Irish and Portuguese governments in recent months has driven the countries into bankruptcy. Despite the sharpening sense of urgency, European Union governments, the Europe Central Bank, and the European Commission remained gridlocked over how to respond to the debt emergency, which pushed Greece closer to sovereign default and Europe towards a fresh banking crisis. These borrowing costs soared to record levels as investors took fright which resulted in suffering for global stock markets

Albeit Germany has back tracked from this Greece crucial stage while promising a debt compromise plan but Till date European Central Bank, IMF, Bank of England are trying to take out possible measures for dealing with this problems. e.g

The 17 Eurozone finance ministers has structured a new three-year bailout for Greece in Luxemborg in a way that would persuade European banks, pension funds and other private creditors to roll over the country's inflated debt releasing bailout package of 110 billion Euros (159 billion dollars).

All these steps are taken with a hope that it will solve the Greece debt soon and thereby improving their economy.