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Eurozone should move forward or it will fall over (2)

(People's Daily Online)

08:50, June 21, 2012

The external environment of the eurozone does not seem optimistic. The emerging economic entities began entering a deep-level adjustment stage and their economy is collectively slowing down, which weakened the recovery power of the world and the Europe. The chaos of Western Asia especially the Iranian nuclear issue will directly affect the crude oil supply to the eurozone especially the southern European countries. Therefore, the eurozone has become the best place for financial speculators and meanwhile it also will make the international hot money flow into some country to help its economic recovery. It is suspicious that rating agencies always step on the eurozone at the crucial moment.

Judging from the operation mechanism, the coordination within the eurozone is facing increasing challenges. After Hollande came to power, how Angela Merkel who advocates an austerity policy will coordinate with Hollande who is a supporter of expansion and stimulation will directly affect the future direction of European debt crisis. From a deeper level, thousands of years of history has formed the current multispeed Europe so it is impossible for the PIIGS countries to catch up in a short time.

In order to maintain the eurozone, its core countries should lend a helping hand and the PIIGS countries must get rid of the bad habits and tighten their belts, but both sides are reluctant to do so. As the crisis deepens, this opposition also grows. The general election of Greece is a true portrayal. Therefore, there will have more problems of coordination within the eurozone in the future.

From a broader point of view, although the current situation in the eurozone is tense, it has a solid foundation. Internal stability is especially important. The eurozone with rich people but poor countries, if compared to a bike, can certainly reach the destination as long as its people bite the bullet and make concerted efforts.

Read the Chinese version: 欧元区“骑单车”不进则倒
, source: People's Daily Overseas Edition , author: Qin Hong$

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