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Global markets at peril again

16.08.2011 09:33 "Agro Perspectiva" (Kyiv) — Now that the U.S. foreign debt cap situation is at least clearer now, the World Bank Group president Robert Zoellick has come up with a warning about a new wave of crisis that may again — make the world — and primarily European countries face a new danger, now in the Euro zone. The cause is their sovereign debts. Politicians and economists continue to look for who to blame. This time they were a group of the EC leaders headed by Angela Merkel. We are on the brink of the early stage of a totally new and different crisis that is not similar to what happened in 2008. What has brought about the threat of a new crisis was «overtly liberal» credit and finances policies of the leaders or European countries, who asked for more and more credits. According to George Soros, the recently established European Financial Stability Fund whose task is to solve credit crises in the Eurozone, is but a half-measure, because the money it can control is not enough to fulfil this task. Besides, the bulk of its money comes from Germany, whereas other states play an insignificant role in filling its coffers. Experts believe that Germany can save the Eurozone, but Angela Merkel’s government should take a harsher measures to save the budget in her country even disregarding the opinion of opposition electorate. The only financial institution in the world is capable of shouldering such expenses, the European Central Bank, a saviour creditor. The International Monetary fund may also be of help. The disease of individual EU countries is spreading very fast along the union’s system, threatening to swing all its states, unless an efficient remedy is found. Spain and Italy, evidently has passed their points of no-return, with Belgium in France possible following them.

Voice of Russia Radio

< German businesses invited to submit proposals on improvement of investment terms in Ukraine All news for
16.08.2011
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