Debt crisis in europe

The ongoing debt crisis in Greece continues to spur unrest, move markets and threaten the very fabric that connects the eurozone. Exactly how much effect a Greek default — and the domino effect in lending costs it would have throughout Europe — would have on the U.S. business world remains unclear.But a good rundown from CNN Money offers a list of the three biggest risks Greek default presents for the United States: (1) U.S. bank exposure to sovereign debt, (2) a pullback in U.S. exports, and (3) U.S. business slow down.To me, the last one seems the most threatening. Only now is the U.S. economy beginning to make any headway on replacing the jobs lost after the 2008 meltdown — and even this “recovery” remains mild, at best.Here is how CNN breaks down that risk.Many products sold by U.S. companies in Europe are made in Europe.And losses there are already taking a bite out of U.S. multinational firms, from automakers General … [Read more...] about The Greatest Risks of the Greek Debt Crisis to the U.S. Economy

Jun 11, 8:54 AM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Opinion By Bruno Pellegrino 06/04/18 AT 6:04 AM Italy managed to form a government after briefly slipping into political crisis, which sent markets around the world into a panic as investors fretted about the fate of the European Union. The crisis began on May 27 when the political party that won the most seats in March elections initially failed to form a government.Economist Bruno Pellegrino, who has previously written on Italy’s economy, explains what’s going on and why it matters.1. What’s driving the political chaos?The March 4 election dramatically tilted the balance of power in the country.It was a true political earthquake: The Italian electorate resoundingly rejected the political establishment that has held power since the mid-90s in favor of populism, as happened in the 2016 U.S. … [Read more...] about What’s Behind Italy’s Crisis And Why It Matters

By Renee Maltezou IOANNINA, Greece (Reuters) - He caused a stir with unorthodox tactics at the peak of Greece's debt crisis four years ago, sees politics as a job that stinks but still needs doing, and says the European Union needs fixing. Yanis Varoufakis, the former Greek finance minister, self-declared "erratic" Marxist and motorbike enthusiast, is back and wants to take his vision for a fairer society to the European Parliament. But, true to form, he won't be bound by conventional politics in the May 23-26 European election. Instead, of standing in Greece he is running for a European parliamentary seat in Germany, whose austerity-minded government he locked horns with during the Greek debt row. "There is no clash between the Greeks and the Germans, there is a clash between progressive rational humanist policies on the one hand and the varieties of authoritarianism on the other," Varoufakis told Reuters in the northern Greek city of Ioannina. He will be seeking a seat as leader of … [Read more...] about Greece’s Marxist minister is back with a message for Europe

By Joe Bavier PRETORIA (Reuters) – African countries running up debt they won’t be able to pay back, including to China, should not expect to be bailed out by western-sponsored debt relief, the United States’ top Africa diplomat warned. The International Monetary Fund and World Bank began the Heavily Indebted Poor Countries (HIPC) Initiative in 1996 to help the world’s poorest countries clear billions of dollars worth of unsustainable debt. But Africa is facing another potential debt crisis today, with around 40 percent of low-income countries in the region now in debt distress or at high risk of it, according to an IMF report released a year ago. “We went through, just in the last 20 years, this big debt forgiveness for a lot of African countries,” said U.S. Assistant Secretary of State for Africa for African Affairs Tibor Nagy, referring to the HIPC programme. “Now all of a sudden are we going to go through another cycle of that? … I … [Read more...] about Don’t expect debt relief, United States warns Africa

Opening a meeting of his far-left Syriza party, Tsipras said he was confident a solution over repayments would be found, despite talks between Greece and its creditors ending in Brussels with no breakthrough on Friday. Months of feuding with the IMF has rattled markets and raised fears of a new debt crisis, with Athens resisting pressure to cut public services any more than has already been agreed with creditors. The Greek premier urged a change of course from the IMF. "We expect as soon as possible that the IMF revise its forecast.. so that discussions can continue at the technical level," he said. And referring to Germany's Wolfgang Schäuble, Tsipras called for Chancellor Angela Merkel to "encourage her finance minister to end his permanent aggressiveness" towards Greece and "stop playing with fire". "The IMF is playing a game of poker by dragging things aside because it does not want to blame the intransigence of the German minister," Tsipras said, criticising the "new … [Read more...] about Tsipras hits back at Germany, IMF over debt impasse