*sigh* More Crisis in the Eurozone

The Eurozone crisis continues to dominate the airwaves today with reports that Spain will ask for a bailout by this afternoon. Despite these rumours the Spanish government is denying that it will ask for a bailout and it will be able to sort itself out. Yesterday Obama urged Europe to try and sort things out; he is fed up with the dithering and the lack of leadership at the heart of Europe. Obama knows that if Europe doesn’t sort itself out then the American recovery will be blown off course months before a re-election. Yesterday news came that Spain’s credit rating was downgraded to BBB by the ratings agency Fitch, which estimates that Spain will need between €60 and €100 billion to save its banks, pushing Spanish debt to 95% of GDP. This is unsustainable; the austerity already underway in Spain is only going to cause debt to rise and the economy to contract. Not what we want.

To be frank I’m fed up with the crisis in Europe, it’s CONSTANTLY in the headlines. Barely an evening passes by when I’m not hearing about the crisis in the Eurozone. The only break we got from it was when the news was all about the Jubilee last weekend! Europe has shown extremely weak leadership in this crisis and we are the only ones able to decide our fate. Europe must stand up and tackled the debt crisis, if we do not find a strong leader within the next few months the Euro, Europe and the social order of earth is doomed (OK – so a slight exaggeration, but my point is still valid).