EU’S bub­ble burst

Enterprise - - Editor’s desk - Ahmed Faakhir La­hore

The global econ­omy does not ap­pear to of­fer much hope in wake of the re­ces­sion and the EU cri­sis is im­pact­ing its mem­ber coun­tries, even those that are not hit by the re­ces­sion. Strug­gling Euro­pean gov­ern­ments are un­able to pro­vide higher in­ter­est rates to in­vestors, which have fur­ther fright­ened them away, look­ing at the size of the bud­get deficits. Though orig­i­nat­ing in the US, the cri­sis has se­verely wors­ened the bud­get deficit for EU gov­ern­ments, as the ma­jor Euro­pean banks hold as­sets in the fi­nan­cially trou­bled Amer­i­can banks. How­ever, one can­not deny the chain im­pact of fi­nan­cial cri­sis in an in­te­grated global econ­omy and there is a height­ened need for stronger mul­ti­lat­eral un­der­stand­ing of global eco­nomic poli­cies. In this re­gard, the EU’S con­trol strat­egy may also serve as a hope­ful means of re­cov­ery but that would only be pos­si­ble if past mis­takes were not re­peated

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