Consequences of Financial Crisis In Europe
In the wake of ongoing financial crisis in Europe, people are getting uneasy of welfare policies of the government and Europe’s future. Austerity measures taken so far have failed to improve economy of many European countries. Instead, people are more discontented and getting increasingly apprehensive of European policies, which seem to have lost direction.
Financial crisis in Europe has caused widespread unemployment in most European countries. The Spanish National Statistics Institute reports that during the first quarter of this year, rate of unemployment in Spain reached record level of 27.16 percent, meaning 6.2 million people have no work.
Going by the report of the French Ministry of work, unemployment in France went up to 3.187 million, with 18,400 additional people going without jobs. This level of unemployment is similar to what France faced in 1997.
Italy too has recorded its highest level of unemployment during the last twenty one years. In January 2013, the rate of unemployment rose to 11.7 percent compared December 2012 figure of 11.3 percent.
And the United Kingdom is no exception either. According to the office for National Statistics in England, the rate of unemployment in February 2013 rocketed to 7.9 percent, meaning the number of unemployed people went up from seventy thousand to 2.56 million during three months.
Inflation is further adding fuel to the financial crisis in Europe. Since 1982, the pound has been eroded by more than sixty percent. Lloyds Private banking rates the inflation as severe that can be seen from the prices of consumables. In 1982, the price of standard beer was £0.73, but in 2012 it stood at £3.18, signifying an increase of 336 percent, whereas the prices for bread went up by 235 percent in the same period. The corresponding increase in prices of one dozen of eggs rose by 286 percent. In 1982, gold stood at £203, which went up to £1,096 in 2012, meaning an increase of 438 percent.
Perhaps, nowhere economic disaster has been as severe as in case of Cyprus and Greece. In nutshell, the European Union today is bankrupt having debt plus unpaid bills to the tune of £108 billion.
The financial crisis in Europe is being attributed to various reasons including crime, drugs, and immigration and increased rate of birth in deprived areas. Many reasons are being put forward to explain the present financial crisis in Europe. Though many reforms been tried, these have so far failed to solve the problem. The society is beginning to doubt if the idea of single market for Europe will make Europe an area for battling their economic interests.
The European Union is fashioning a novel country rate based on economic growth. Spain, Italy, Greece and Portugal form the new poor. Bulgarians and Rumanians are the established poor against the rich of Britain, Germany and Scandinavia. In this state of financial crisis, Europe is nowhere close to “the promised land” of all European.
The financial crisis in Europe has transformed Europe to a land of poverty, high level of unemployment and inflation, anxiety, anguish and depression.