Ideas and plans of European Economic Council become more realistic, according to French Foreign Minister Alain Juppe. The European Economic Council started set of meetings in Brussels and other major european cities in order to prevent the eurozone region slip into double-dip recession. Talks between Germany’s head of state Angela Merkel, French President Nicolas Sarkozy and other European Union foreign ministers are set to came out with realistic and effective economic stimulus plan. Germany and France are opting for another round of european bail-out for struggling economies in Southern European region like Greece, Italy and Portugal.
According to French Prime Minister Francois Fillona, France is on the road of significant risks. In 2012 French government will have to decide on new forms of public savings in order to cope with falling gross domestic product. France economy is slipping into negative grow do to negative data coming from Greek economy. It is important to notice that French government has high number of outgoing foreign investment in Greece, which is on the risk to not be pay-off. In order to cope with upcoming crisis and high risks of another recession, Paris politicians decided to reduce the city’s deficit from 7 precent GDP in 2010 to 5.7 percent by the end of this year. At the same time hoping to go down as far as 3 percent (which is require by European Union standards) by the year of 2013.
It is greatly unknown whether French politicians will succeed in its plan for public deficit reduction, giving the stakes that French people are already struggling with high unemployment, especially in the youth – ages 18 to 24. Also, it is true that French economy is in much better condition then in it’s neighboring countries like Spain and Italy. By comparison Spain economy is struggling with massive youth unemployment, which as of October 2011 reached pessimistic number of 40 percent for the ages 18 to 24. Furthermore, same exact problem goes on with Italian economy – rising youth and overall unemployment, growing government deficit and poor customer spending.
European Union representatives worry for another recession. The odds are significantly not on European side, giving the fact that public is already very frustrated with poor economic management and planing. Most economic experts around the world are united in giving their opinion and advice for Europeans – cut the public deficit, cut the unemployment and don’t allow Italy and Portugal to follow Greek way of handling their finances. It seems simple and straight forward but as it comes with many economic problems, politics plays it dice.
On optimistic note, French government is doing everything to stop its economy to go down the road but it lacks exporting muscles that Germans posses. Germany on other hand is trying to encourage its neighbors to rise public interest is customer spending. So far in countries like Poland, which was the only European country not suffering negative grow during the 2008 economic crisis, there is rising spending in interest base bank deposits, known simply as lokaty. Lokaty bankowe – meaning literally bank deposits, became recently very popular in Poland due to the fact that banks offer higher interest rates than in the previous years. Other european countries are hoping that polish popularity in bank deposits will spread into their nations allowing banks to save more cash; and, therefore strengthened their stand against future economic turmoils.