https://next.ft.com/content/0c9acf2e-d189-11e5-92a1-c5e23ef99c77
Four signs another eurozone financial crisis is looming
https://next.ft.com/content/2b918ed2-d17e-11e5-831d-09f7778e7377
Eastern Europe defies the gloom
Two
articles from Financial Times tell different stories of the Eurozone. In East
Europe, since 2014, the Eastern European economy has been picking up . Bulgaria
was the weakest , with a year-on-year rise in GDP of 3.1% in the last quarter
of 2015, while Slovakia the strongest at 4.2%. Moreover, these economies enjoy
a period of high growth but low inflation, as they benefit from the slump of
oil prices. While another article suggests the Eurozone is near another
financial crisis. The whole eurozone faces the same external risks and shocks
and is influenced by the ECB's policies. Some economies are doing better than
others because they have different economic structures, in other words, their
income sources are different. Similar situations happen within a country as
well, as some parts of a countries can be richer than other parts. However,
because of the central government power, the central government can
redistribute wealth across regions. Such case does not happen in the Eurozone.
Only monetary union is too weak, some sort of fiscal union may be necessary to
gather sufficient resources to restructure the economies which are in bad
shape. However, currently, austerity limits the speed of Greece and other
countries to build healthy economies. To conclude, with only help from some
financial institutions and the ECB, the speed of recovering the eurozone
economy is limited and may be too slow to avoid another crisis.
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