Introduction
The article “Signs of Life in Euro Zone Could Point to Recovery” by Ewing and Minder (2013) focuses on the future of the European economy based on some current events. The economic conditions observed in Greek, Italy, Spain and other European nations over the last four years have indicated that the Euro Zone is prone to economic crisis that could also affect other parts of the world.
In fact, declining economic growths and financial crisis over the last five years have strained the idea of developing a unified Europe. However, the current economic conditions in these nations provide some hope that the regional economy will improve. Arguably, the current events reported in the article are strong indications of a possible quick economic recovery in the European Union.
Article analysis
Current event in Europe
Ewing and Minder (2013) have presented a number of economic, social, political and geographic evidence that show some signs of economic recovery in various nations. For instance, the article shows some confidence in French banks, which has resulted from effective strategies for recovery.
Such strategies have led to effective clearing of debts and fiscal problems. However, they argue that one of the current events that indicate a possibility of quick recovery is the economic growth in Spain. According to the analysts, Spain is experiencing one of the best rates of economic growth in the current fiscal year. Reports indicate that the country’s economy has crawled out of a two year recession, growing by an annual rate of about 0.4%.
Analyses of current events in Spain indicate that the rate of unemployment stands at 26%, which means that the country was the worst hit by the crisis. However, the article reports that the rate is decreasing significantly. Apart from Spain, the article also analyses some recent findings in Portugal, a country that has also crawled out of recession in the last 8 months.
Positive sights of growth
According to the article, reports from various central banks in Europe indicate a strong economic performance in the last few months. For instance, it quotes Holger Schmieding, the Berenberg chief economist, saying that “…even Greece has started recording strong economic growth…” (Ewing & Minder, 2013). In fact, an indication of positive growth in Greece means that the whole region might start recording strong economic performance in the next few months. The current event in Greece shows that an economic recovery is on the way.
Impact of strong initiatives
The authors report that the Central Bank of Europe in Frankfurt has started a new strategy to eliminate bad loans and damaged investments in order to enhance growth and recovery. The strategy involves going through financial banks in the region to identify bad debts and damaged investments caused by the recession.
The report will be exposed in order to determine the best way of dealing with these issues and reduce chances of financial crises in the future. In addition, the report shows that the European Union has reached a decision to designate the European Central Bank as the top watchdog in order to de-Balkanize the banking system in the region. The aim is to ensure that countries using the euro as their official currency operate under the same central bank.
Conclusion
The situations in France, Spain, Italy and even Greece indicate that the region is slowly but progressively recovering from the financial crisis. According to the article, the process will benefit investors and marketers seeking to invest in any member of the Union. Investors expect the Central Bank of Europe to cull the affected banks and promote growth in healthy institutions.
References
Ewing, J., & Minder R. (2013, October 23). Signs of Life in Euro Zone Could Point to Recovery. The New York Times. Retrieved from https://www.nytimes.com/2013/10/24/business/international/signs-of-life-in-euro-zone-could-point-to-recovery.html?ref=business