Europe

By Paola Pecora the European financial crisis has entered a new and more dangerous phase warns Larry Summers from the Financial Times. And it is that today, the fear that dropping one or another country in default already translates in terms of European integration and global economic recovery. When before tranquilizabamos us do Greece? What can influence the fall in default of Greece on the global financial system or have consequences on United States stock markets? The effects are null and void, us said. Now save the eurozone is to save more than Europe. The Economist Intelligence Unit which is the unit of business information from The Economist Group that publishes The Economist and forms a global network of 500 analysts that continually analyze political, economic conditions and business in more than 200 countries, predicts that the growth rate in the eurozone will fall from 2% of this year’s growth at 1.4% in 2012then kept between 1.7% and 1.8%, and 1.8% in the next 3 years. Too much futurology very long term in an issue too sensitive and surprise that is the scene of Europe’s current financial crisis. However, when referring to the situation in Italy, are compelling: fears about the sustainability of the Italian debt is focused on its low growth rate. Raise it would require structural changes, and the current political system seems to be unable to do so.

Goldman Sachs fears global consequences in the event of a financial meltdown in Spain or Italy: the interconnection between Italian and Spanish sovereign debt their banks and the European financial system is such that the perception of long-term instability can reach extreme consequences beyond national borders. It is said that the 17 countries of the euro share the same boat, which will pull overboard to Italians and Spaniards if their countries cannot take money at sustainable rates. According to the Wall Street Journal, these countries are too large to save.