Thursday, February 25, 2010

The Greek financial crisis and the future of the euro

Financial analysts are openly questioning the future of the Euro. As a result the Euro has depreciated against the major currencies of the world.

Greece’s prime minister, George Papandreou said, “there’s no issue of leaving the euro or of asking for help from the IMF”.

The rich northern European countries are criticising the Greece and other southern European countries. Financial markets are referring southern countries of Europe - Portugal, Italy, Greece and Spain as PIGS.

The ill conceived idea of floating a single currency in Europe is testing the will and strength of the European Union to deal with the financial crisis in the southern European countries.