Student Loan Consolidation

Top heads from European countries are set once again to discuss another rescue plan giving the rising fears of the region slip into another recession. European leaders are hoping to came out with agreement on handling the Greek economic situation, Italy and Spain troubling data and French deficit problems.

What’s wrong with European economy? It is highly likely that due to the Greek ongoing financial problems and their inability to effectively handle their government debt, the “greek tragedy” – as called by many critics of this country – will spread towards Italy and Spain, and ultimately throughout the whole eurozone. The whole problem is very frightening for european officials giving the fact that Greek economy only counts as 3 percent of eurozone area gross domestic product. Many critics and experts voiced their opinion in the negative form, meaning simply that Greece should be allowed to default. The further european officials discus another form of Greek bail-out, the more likely it seems Greek situation is just a margin of problems that europeans face. Simply, as pointed by many economic advisers, countries with massive economies like Italy and Spain should not be allowed to face financial problems similar to Greek – high public debt, high unemployment and poor handling of economic situation. If Spain’s or Italy’s economies suffer further with growing deficit and rising unemployment (especially youth which in Spain is as high as 40 percent) then the eurozone area and whole European Union agreement is in a great danger. Recently, to add up the negativity to european situation, France started to appear significantly weaker than previously thought. French banks are the most exposed to Greek economic problems. France over the previous years placed the most assets into the Greek economy, especially the banking industry; therefore, rather receiving high return on investment, French are unlikely to get their money back. In fact it is very certain that due to Greece inability to pay off in full it’s borrowed money, they will be allowed to pay back just the portion of the whole sum. This situation strikes German and French disagreement. Germany which is less exposed to Greek economy than France is bulling for only 50 percent Greek pay back return, while France is hoping to be at least 80 percent.

As pessimistic it may seem, the Greek financial problems are – in realistic terms – insignificant to the whole european problems. What most financial experts observed, European leader should have long ago allowed Greece to default and focus on strengthening european biggest banks and bigger economies, such as those of Spain and Italy. Many analysts passionately point and voice their advice that Europe should focus on structuring financial rescue plans for Spain and Italy. Both of those countries suffer with high unemployment, poor customer spending and rising governmental debt. Moreover,  economies of Spain and Italy are simply to big to bail-out; therefore, it is very important for eurozone to not allow Greek cliché.

On other hand, slight optimistic data has came from one of European Union member nations – Poland, in regards to it’s citizens rising interest in bank deposits (known in polish as lokaty). Lokaty bankowe – which literally mean in english interest base bank deposits, are on the rise in terms of popularity since late August of this year. Banks in Poland and competing against one another by offering constantly higher deposits interest rates. Polish customers are driven by lucrative offers to invest their savings in one of the banks; therefore, allowing polish banks to save more cash in times of great financial uncertainty. Some of the European leaders are hoping that polish popularity of interest base bank deposits will spread to other european countries. Financial Ministers from all European nations agree that many of european banks are significantly lucking proper amount of savings in these uncertain times.