Euro brought down by debt crisis reaches four year low by Zuzana Zelenakova

All over eurozone two words echo these days, austerity measures. The debt crisis, triggered by Greece, is still here and member states of the EU are struggling to cut their spending. The Greek economy was the fastest growing in eurozone in the first years of the 21th century, however, the global financial crisis came in 2008 and the country´s two major industries, which are tourism and shipping, were disrupted by it with revenues falling sharply throughout 2009. To keep up with the EU´s monetary criteria, Greece was not delivering true economic statistics. It was discovered that the country paid great deal of money to various foreign banks just to hide the actual! level of borrowing. And it led where it led. EU member states are delivering bailout package of enormous size to Greece, although some do so with a great deal of reluctance, like Germany for example. Now the EU currency has reached its four year low against dollar. On Monday, the euro fell to $1.2237 to recover later to $1.2307. "Concerns that severe fiscal austerity in the eurozone will crush growth in the region continues to weigh (on the euro)," says John Kyriakopolus from the National Australia Bank in Sydney. After the EU and International Monetary Fund approved rescue package of 750 billion euros earlier this month a kind of euphoria seized the markets and the euro was rising. However, then the weight of the whole financial situation returned and the euro began to fall. “The central bank is trying to endorse a weaker currency and signal that they may not be as much in a rush to raise interest rates,” said Kathy Lien, director of currency research at onlin! e currency trader GFT Forex in New York. “Like everyone ! else in the world, they’re worried about the global financial markets and what growth could be like six months from now.”

related story (sgx17335): http://www.france24.com/en/20100518-euro-four-year-low-us-do...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

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