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Current event analysis: “Signs of Life in Euro Zone Could Point to Recovery”

Outline
1. Introduction
a. Background
b. Thesis
2. Article analysis
a. Current events in Europe
b. Positive signs of growth
c. Impact of strong initiatives
3. Conclusion
 
Current event analysis: “Signs of Life in Euro Zone Could Point to Recovery”

Introduction

The article “Signs of Life in Euro Zone Could Point to Recovery” by Ewing and Minder (2013) analyzes the possible future of the Euro Zone economy using the current events. The economic conditions observed in Greek, Italy, Spain and other European nations over the last three years have indicated that the Euro Zone is prone to economic crisis that could also affect the world economy. In fact, declining economic growths and financial crisis over the last five years have strained the idea of developing a unified Europe. However, the current economic conditions in these nations provide some hope that all will be well in the coming years. Arguably, the article provides an example of the current events that indicate the possibility of quick economic recovery among the members of the European Union.
Article analysis

Current event in Europe

Ewing and Minder (2013) have presented a number of economic, social, political and geographic evidence that indicate the possibility of recovery in various members of the EU. For instance, they refer to the confidence observed in French banks due to effective strategies that have led to clean up of debts and fiscal problems. However, they argue that one of the current events that indicate a possibility of quick recovery is the economic growth of Spain. According to the analysts, Spain is experiencing one of the best rates of economic growth in the current fiscal year. Reports indicate that the country’s economy has crawled out of a two year recession, growing by an annual rate of about 0.4%.
Analyses of current events in Spain indicate that the rate of unemployment stands at 26%, which means that the country was the worst hit by the crisis. However, the article reports that the rate is decreasing significantly. Apart from Spain, the article also reports the recent findings in Portugal, a country that has also crawled out of recession in the last 8 months.

Positive sights of growth

According to the article, reports from various central banks in Europe indicate strong economic performance in the last few months. For instance, the report quotes Holger Schmieding, the Berenberg chief economist, saying that even Greece has started recording strong economic growth in the last few months. In fact, an indication of positive growth in Greece means that the whole region might start recording strong economic growth in the next few months. The current event in Greece, which was the worst hit by the crises, shows that an economic recovery is on the way.

Impact of strong initiatives

The article also reports that the central bank of Europe in Frankfurt has started a new strategy to eliminate bad loans and damaged investments in order to enhance growth and recovery. The strategy involves going through financial banks in the region to identify bad debts and damaged investments that have occurred in the last four years. The report will be exposed in order to determine the best way of dealing with these issues and reduce chances of financial crises in future. In addition, the report shows that the European Union has reached a decision of designating the European central bank as the top watchdog in order to de-Balkanize the banking system in the region. The aim is to ensure that countries using the euro as their official currency operate under the same central bank.

Conclusion

The situations in France, Spain, Italy and even Greece indicate that the region is slowly but progressively recovering from the financial crisis. According to the article, the process will benefit investors and marketers seeking to invest in any member of the Union. Investors expect the central bank of Europe to cull the affected banks and promote growth in healthy institutions.
 
References

Ewing, J., & Minder R. (2013, October 23). Signs of Life in Euro Zone Could Point to Recovery. The New York Times. Retrieved from http://www.nytimes.com/2013/10/24/business/international/signs-of-life-in-euro-zone-could-point-to-recovery.html?ref=business

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