Nobel Prize Economics 2010

On the 11th of October 2010, 3 economists were rewarded by the nobel prize economics. Two of them are american, and the last one is british and cypriot. Those two nationalities are a strong symbol for the European Union. Indeed, England entered the EEC (former EU) in 1973 and Cyprus entered the Eu in 2004. In a way, Christopher Pissarides is tracing the history of the EU construction through his prize. Indeed, C. Pissarides is a well-known academic at the London School of Economics, but he was born and raised in Cyprus and studied in Greece until he got to England. He embodies the European self-made who took advantage of the european wealth regarding cultural patrimony. For example, Mr Pissarides speaks Greek, Cypriot, English and French. His research interests focus on several topics of macroeconomics, notably labour, economic growth, and economic policy. It shows how much the european identity is at the core of global problems cause the EU is a member of the Triade. That's why we need to feel concerned by events taking place on a global scope because our politics and economics role is such an absolute necessity. Otherwise the industrialised world would rather go round in circles or would be just ticking over.
The primacy of the European Union is a privilege we need to maintain.

British Election

British Legislative Election Video

Here is a video from BBC news dealing with the coalition Cameron-Clegg

http://news.bbc.co.uk/2/hi/uk_news/politics/election_2010/8678621.stm

DRAMATIC CONSEQUENCES ?

Thousands of greek citizens have demonstrated to express their feeling towards the economic crisis. These violents riots in Athena streets necessitated a police intervention to pacify. Unfortunately, more than 10 people died because of those disturbances.

THE GREECE BANKRUPT

Greece knows an awful economic situation today. Indeed, Greece needs a financial rescue from European Central Bank, International Monetary Fund and Eurozone members to finance her debt.

European finance ministers endorsed the draft deal to provide a €110 billion bailout loan. Two thirds of this amount of money will come from eurozone members and the rest from IMF. Greek finance minister, Andreas Papaconstantinou prepares the Greeks to make big sacrifices on the next three years to restore the economy. He said:"the choice is between collapse or salvation". The Greek Prime Minister announced budget cuts of €30 billion for the next three years. Besides, the country's deficit is about 14% of GDP, (10% more than ECB legislation) and the deficit is more than 150% of GDP.

The three-year programme would back the deficit to 2,6% by any means necessary. Salaries and pensions in the public sector will be frozen, VAT will rise from 21 per cent to 23 per cent and duties on fuel, cigarettes and alcohol will rise by 10 per cent. Early retirement will be curtailed. All these new austerity measures will enable "Greece not to go bankrupt" said George Papandreou.

The problem is the greek bankrupt could generate a financial firestorm across Europe: destroying confidence in the Euro, devaluation of this currency... Therefore all european countries are concerned to provide the market and the protection of the eurozone, Greece is not solely implicated in this problem. By the way, German Chancellor, Angela Merkel, said that "the loan was the only way to ensure the stability of the euro".

Portugal seems to be the other "pig" of the eurozone, according to anglo-saxon medias. But Portugese expenses are justified by the world economic crisis that made her economy plunge, contrary to Greece which disburses "illegaly".

As a matter of facts, European Finance ministers thought that Eurozone members that appear like a threat to the salvation and the prosperity of the Euro market, will be ruled out.

Nowadays, many states are in debt because they try to save their financial system. In the one hand, countries could be more connected and united by this european crisis, but in the other hand, it emphasizes the fact that we need a better economic and financial european governance.