Euro drops to 4-year low, Asian stock markets fall
EU’s common currency fell to a 4 year low on Monday as fears are growing over the future of the European Unions’s economy.
As Daily News Corner reported yesterday, EU finance ministers have agreed on a huge bailout package to protect weaker EU member states from the Greek crisis spreading on them and to save the eurozone in general. However the initial response from the markets was positive for the announcement but shortly after the euro has begun falling and now it’s clear that investors aren’t fully convinced if the rescue package will be able to treat the current crisis.
ECB President Jean-Claude Trichet has declared to Der Spiegel today: „It’s the biggest crisis we are facing now since World War II or even since World War I”
The euro is down to a value of $1.2291 as it continues to suffer from the crisis in Greece.
Experts say the bailout package itself is not enough to solve the current situation and to start boosting economic growth in the territory, if member states aren’t going to introduce austerity measures urgently.
Yesterday German Chancellor Angela Merkel announced: „The bailout package worth €750 billion euros will help to build a bridge and cut the gap between EU economies”.
Asian stock markets have fallen on Monday as investors are concerned if the cost-cutting policies introduced in Greece, Spain and Portugal will have major impact on their economies and will restore the confidence in the eurozone.
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