Globe and Mail: Crisis in Europe Continues

crisis europe“Debt crisis is over but serious issues persist” is the title of Globe and Mail Correspondent Eric Reguly’s article, published on the occasion of the Greek EU Presidency that began January 1, 2014.

The article pointed out that the economic crisis in the European Union is continuing, despite the fact that the European Commission president, Jose Manuel Barroso, who attended the ceremony for the celebration of the Greek EU Presidency in Athens, said that the worst is over. “I have said, precisely one year ago, that the existential crisis of the euro would be behind us, and I believe this is the case now,” said Barroso in Athens.

It is noted that Greece as well as other European Countries (Ireland, Portugal, Italy, Spain) are currently in better financial condition than the previous year, however the austerity program is still applied in Greece.

According to the article, it may seem that the crisis has ended, however structural problems remain, as in the case of Italy, which is described as “massively uncompetitive” in terms of economy. The president of the European Central Bank, Mario Draghi, commenting on Barroso’s statement said that “it is premature to declare victory.”

The article concludes saying that “no pro-market, pro-reform measure of substance has been launched in Italy or France in the past year or so. The euro zone economies will continue to diverge even as bond yields stay low.”