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Thus Germany bears some of the burden for the decimation of Greece's economy, and that of other European states, to begin with.
During its bailout of Greece, Germans banks do not have to incur any costs. In fact, German banks are buying high-interest bonds that are effectively guaranteed by the euro-zone governments. The best part of this plan for the banks is that German taxpayers are guaranteeing the interest and the amortization. While only time will tell if this plan works in the long run, it is appears successful enough to implement in a second country, if necessary. Thus a continued bailout is not only in the best interest of the EU, it is also in Germany.
Finally, providing funds for others states to get out of debt is the only way to ensure the stability of the euro and the EU. In another ironic twist of fate, commentators, academics and politicians have concluded...
Lack of political and economic stability has been a recurring cause of strife and hostility throughout Europe's history. Creating stability throughout Europe by way of bailouts is in the best interest of both Germany and the EU.
For the reasons stated above, Germany should help others states get out of debt, especially of those states are part of the EU. The fact that Germany caused both of the World Wars alone makes most of the world believe that it still owes a debt to European society. The more compelling reason to Germany itself, however, maybe that Germany is the one country that can best afford to endeavor to bail out its neighbors in a low-risk fashion, maintain its present economic boon and make even more money in the process.
Economic Analysis & Core Competencies Economic Analysis Germany is an industrialized economy, and one of the wealthiest countries in the world. It's GDP ranks 5th in the world, and is the largest in the European Union. The Germany economy is highly-diversified, and there is a strong manufacturing sector. As part of the European Union, Germany trades within the world's largest economy. This also means that all European companies have access to the
Global Economy Key Player & Background As the spokesperson for an interest group representing an economic think tank, I am issuing this policy statement to detail the implications for the U.S. economy of a sovereign default in the Eurozone. As Reich notes, the financial crisis in Europe is threatening to spread to the United States. If there is a default in Greece, a panic could start in financial markets, spreading to other
environment host country chose study. Discuss briefly political, economic, legal environment focus culture. Make present deeper levels culture, artifacts. HOFSTEDE'S DIMENSIONS .ID Germany: Country analysis Political environment Germany is a parliamentary democracy. It is a multi-party system, which means that political parties must often share power to govern. It is currently led by Chancellor Angela Merkel, who became Germany's first female chancellor in 2009. Merkel is the leader of the center-right Christian
Social evolution to rapid revolutionary change and contemporary globalization dynamics: Emphasizing the an Analysis of Global Economics. An article that recently appeared in The Korea Herald, "U.S. And Germany stress cooperation" details a visit to Germany by U.S. Treasury Secretary Tim Geithner, who met with his German counterpart to discuss the financial crisis that has enveloped Europe as of late. The context for this meeting was important, as the European Union's
257% Greece 12.514% Ireland Baa1 9.384% Spain 5.119% Portugal A3 7.497% The structural issues that underlie the crisis remain unresolved. The austerity measures that have been implemented have failed miserably to restore business confidence -- they are crippling any economic recovery and have not given investors any reason to be confident about resolving the long-run debt problems faced by any of the peripheral Eurozone nations. The specter of increased Eurozone interest rates to meet the needs of Germany will only hurt
Greece Bailout Roadmap The Greek government has faced an ongoing fiscal crisis for the past several years. Recently, for the third time, its Eurozone partners have been compelled to offer a bailout to the country. This is done to stabilize Greece's finances and to impose further measures on the Greek government to remedy the nation's budget and to ensure that there are no similar issues in future. The first part of the