Europe faces fresh austerity cuts

The recent election results in Paris and Athens could push the struggling eurozone towards further crisis. France have rejected austerity cuts and elected a socialist president with a tax and spend policy. Their new President, Francois Hollande, has pledged an extra 20 billion Euros in an effort to kick start their struggling economy and a 75 per cent tax on those earning more than 1 million Euro per year.


Europe faces fresh austerity cuts regularly in an effort to keep the eurozone functioning. But it is facing opposition from the public. In Spain public spending cuts to reduce the country’s budget deficit caused anti-austerity rallies and strike action by teachers as cuts in wages and pension contributions hit the industry. As many as 100,000 jobs could also be lost in the Spanish education system in order to save three billion Euro of tax payers’ money.


Greece remains under immense pressure to introduce austerity cuts in the wake of their most recent financial troubles. With last ditch efforts to create a coalition government failing there is genuine fears in the eurozone that Greece will be forced out by defaulting on its debts. The country needs to implement austerity cuts in order to become eligible for bailout monies from the European Union. These loans could be worth 240 billion Euro but to qualify budget cuts must be made in June.


If austerity cuts are not made and the eurozone plunges further into disarray how will Britain be affected? With 40 percent of Britain’s trade coming from the eurozone the continuing uncertainty is already affecting the nation. Chancellor George Osborne has warned that the eurozone crisis is hitting British jobs and the country’s growth so further impact will be felt in Britain is things continue to decline on the continent.

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