The glass is smashed. The pieces are jumbled up together in confusion. Stuck. But falling one by one. Will this glass survive?
Well, the European Union faces jeopardising financial times with Ireland, Portugal, Spain and Greece going bankrupt. Who will save them? Let us put it in this way, can Britain and Germany save these nations?
Three year loan to Ireland
UK government has decided to offer a three-year direct loan of £7 bn to Ireland to rescue the once Celtic tiger from financial depression, says BBC. The naked melting of the Irish banking system might indicate the initial rift that might break the European Union.
At the same time, will the loan help a country which needs to strictly devise its budget, spending ways and economy?
On the other hand, will the UK economy face positive results after granting this loan? European officials believe that it might help the bleeding economy of Britain, as in three years, they can earn more by interest rates, business and even cross border negotiations.
The European monetary Union is being pushed too far. So, should Ireland discard the Euro? Till 2002, the Republic Ireland survived with the Irish Pound, which alarmingly fell in comparison with other currencies in the international market during the late nineties.
So, to save its skin, Ireland joined the Eurozone, utterly unaware of the fact that it might face the music again. What about the Irish pride?
At the same time, the officials from the European Union will not let the dream of single currency die. Unfortunately, they might face rejection. Sound nations like Germany and Finland are not ready to bailout Ireland without a coherent plan being in action, says the Daily Crux.
Financial downturn in UK
But how can UK save the entire scenario when her own banks are at high stake? The UK’s debts are expected to rise to 79.1pc of gross domestic product (GDP) in 2010, compared with 124.9pc in Greece, 64.9pc for Spain, 118.2pc in Italy and 85.8pc for Portugal, reveals theTelegraph.
The rescue package might affect the pockets of Britons with around £300 per household more investment in the form of taxes.
So, is Europe going to move in two different directions? Will the team of sisters break?
Surprisingly, United States might pressurize the International Monetary Fund to play a role in the bailout. The loan might prove to be financially advantageous with appealing interest rates and paybacks.
Though, it too is surviving recession, US could work better on a common currency because of having a mobile labor market, portability of pensions and common language, says BBC.
Shattering Glass
German Chancellor Angela Merkel in the site Prison Planet believes, “If the Euro fails, even the European Union will.”
So, should we get a new glass? Dump the broken pieces in trash? Or should we handle it with care and see a better reflection? After all, how many times would we change this glass? Blow after blow? Well, that is impossible.
shubhdachaudhary 