European Finance

European Union in a soup!

EU cuts its growth forecast for the the Eurocurrency zone to 1,8%.Global economy looks uncertain this year.Finacial turmoil, sharp slowdown in the United States and very high prices for energy and food will hit growth,but the deacceleration can be shortlived if US picks up its economy this year.In inflation will likely stay well above the European central bank;s guidelines of just under 2 percent with more expensive prices in the supermarkets and gas pumps pushing it up by 2,6 percent. In Euro areas.However the EU prection is based only on its seven biggest members namely Germany,France,Italy,Austria,Spain,UK and Sweden etc.They have somehow not given much weightage to other EU member countries like the Baltic States who are registering growth rates of up tp6 percent-the highest in Europe so far!Poland is forming the major chunk of manufacturing pie in Europe.
Is European Union with its nerve center in Brussels,too dependent on United States for its economical and financial growth?The answer is a firm confirmation from Liga Mathur a resident consultant in a major company.We are putting all our eggs in one basket which can be a really dangerous tradition.Half of European currencies which are still not in eurozone are pegged to US$ directly or indirectly.Europeans tow the political lines dictated by Washington.However there are some historic reasons behind all this!
After the world war-2 their was a major influx of Europeans manly the wealthy and business like jewish community into US from Europe.It was but natural to have a umblicord between America and Europe.When US economy grew the major contributors were from Jewish communities who went on to form major banks,publishing houses and companies in America with lot of outsourcing to Europe.As a result Europe prospered too!After that any policies which were formed in Europe-NATO aligned were “America centric”.Europe also prospered from the anti Soviet bloc policies of united states.
However come 2008 this view has to change!There is no Soviet empire,no communism!Europe which never had an independent army after the world war-2 was hardly in any position to view the world differently from that of spectacles given to them by America!In this era of globalization however this policies don’t make any sense..