Latest News:  
Beijing   Sunny    27 / 13 ℃  City Forecast

Home>>World

New leaders unlikely to solve old problems facing EU

By Zhang Jian (People's Daily Overseas Edition)

16:10, May 16, 2012

Edited and Translated by People's Daily Online

French president-elect Francois Hollande formally took office on May 15, becoming the eighth newly elected leader in the eurozone in a year. The people of the member states of the European Union are generally dissatisfied with their current leaders, and hope that new leaders will improve the situation. However, old problems plaguing the E.U. are unlikely to ease or disappear just because some new leaders take office.

The first problem is the European sovereign debt crisis. Spain, the eurozone’s fourth largest economy, is facing a deteriorating situation, and Italian government bond yields are on the rise. Greece’s mainstream center-right and center-left parties, which support austerity measures, lost so many votes in the May 6 general election that a hung parliament was created. The country is now heading for a repeat election. Since the country’s anti-austerity parities hold a substantial lead in public support, Greece has become more likely to refuse to implement austerity measures agreed to with the E.U. This way, it may get no more bailout money, thus default on its debts, and finally be forced out of the eurozone, delivering a hard blow to the E.U. and even world economies.

The second problem is weak economic growth. Due to market pressures and Germany's insistence, E.U. countries have almost all made great efforts to implement fiscal austerity policies in recent years, but the negative effects of such policies are becoming increasingly visible, including sluggish consumption and investment. Several of the union’s member states such as Spain and Italy have fallen back into recession. 2012 will be the fifth straight year of recession for Greece, where unemployment frequently hit new records, causing serious social problems.

【1】 【2】

Email|Print|Comments(Editor:姚春、叶欣)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Chinese martial arts promoted in schools

  2. APF graduating cadets carry out comprehensive drill

  3. Second batch of traditional architectural culture travel destinations in China

  4. Mongolian culture courses taught in China's Hohhot

Most Popular

Opinions

  1. Short-term trade recovery expected to elude China
  2. Stronger policies needed to push dividend payouts
  3. US, China must co-op to defuse confidence crisis
  4. Regulations holding back financial sector’s progress
  5. City banks' IPO push puts investors at risk
  6. Ways to develop low-carbon economy in China
  7. RRR cut still in country’s best economic interest
  8. Relax high-tech restrictions
  9. Overseas investment yields not nation's priority
  10. A neutral US helpful to stability in S China Sea

What's happening in China

Newly-built vessel to sail for South China Sea gasfield

  1. Teacher injured from saving students conscious
  2. China to increase residential land supplies
  3. Lingering drought dries rivers, reservoirs
  4. A new rule that makes parents get divorced
  5. Anti-corruption survey results questioned

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai