Be it the United States or the European Union, most Western countries
are so highly indebted today that the markets have a greater say in their
policies than the people. Why are democratic countries so pathetic when it comes
to managing their money sustainably? In the midst of this confusing
crisis, which has already lasted more than five years, former German Chancellor
Helmut Schmidt addressed the question of who had "gotten almost the entire world
into so much trouble." The longer the search for answers lasted, the more
disconcerting the questions arising from the answers became. Is it possible that
we are not experiencing a crisis, but rather a transformation of our economic
system that feels like an unending crisis, and that waiting for it to end is
hopeless? Is it possible that we are waiting for the world to conform to our
worldview once again, but that it would be smarter to adjust our worldview to
conform to the world? Is it possible that financial markets will never become
servants of the markets for goods again? Is it possible that Western countries
can no longer get rid of their debt, because democracies can't manage money? And
is it possible that even Helmut Schmidt ought to be saying to himself: I too am
responsible for getting the world into a fix ?
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, November 20, 2012
Be it the United States or the European Union, most Western countries
are so highly indebted today that the markets have a greater say in their
policies than the people. Why are democratic countries so pathetic when it comes
to managing their money sustainably? In the midst of this confusing
crisis, which has already lasted more than five years, former German Chancellor
Helmut Schmidt addressed the question of who had "gotten almost the entire world
into so much trouble." The longer the search for answers lasted, the more
disconcerting the questions arising from the answers became. Is it possible that
we are not experiencing a crisis, but rather a transformation of our economic
system that feels like an unending crisis, and that waiting for it to end is
hopeless? Is it possible that we are waiting for the world to conform to our
worldview once again, but that it would be smarter to adjust our worldview to
conform to the world? Is it possible that financial markets will never become
servants of the markets for goods again? Is it possible that Western countries
can no longer get rid of their debt, because democracies can't manage money? And
is it possible that even Helmut Schmidt ought to be saying to himself: I too am
responsible for getting the world into a fix ?
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The decision to downgrade France comes nine months after Moody’s put the country on negative outlook. In July Moody’s put Germany, Luxembourg and Netherlands’ AAA ratings on negative outlook.
Fitch, itself a French company, is now the only major credit rating agency to maintain a AAA rating on French Government debt.
Although ratings downgrades have had little or not effect on the borrowing costs of countries such as USA, the French downgrade to Aa1 will not be welcomed by the French government.
Pierre Moscovici, France's finance minister, blamed the economic management of past governments for the downgrade, and said that French debt remained among the most liquid in the eurozone.
"Moodys is now giving France the same rating as Standard & Poor's, which has allowed us to live with low interest rates for many months," he said.
Francois Hollande’s administration is current trying to push through changes in employment and corporate regulations designed to get the economy moving again.
While these were welcomed by Moody’s, the agency noted: “The track record of successive French governments in effecting such measures over the past two decades has been poor.”
The rating agency said France’s long-term economic growth had been hit by its inflexible labour market and low levels of innovation eroding its competitiveness and industrial base.
Moody's also flagged up the country’s exposure to the continuing eurozone crisis.
It warned the “predictability” of France’s resilence of further shocks in the eurozone was diminishing while the country’s exposure to the highly indebted countries such as Spain and Greece was disproportionately high.
In a statement Moody’s said: “Further shocks to sovereign and bank credit markets would further undermine financial and economic stability in France as well as in other euro area countries.
“The impact of such shocks would be expected to be felt disproportionately by more highly indebted governments such as France.”
Comisarul european pentru energie, Günther Oettinger, a transmis catre premierul Victor Ponta si ministrul Economiei, Daniel Chitoiu, o scrisoare prin care isi exprima preocuparile sale profunde fata de modul in care au fost selectati, recent, de catre Parlament, membrii Comitetului de Reglementare al Autoritatii Nationale de Reglementare in Domeniul Energiei (ANRE). "A fost adus in atentia mea faptul ca procesul de numire a membrilor Comitetului de Reglementare al ANRE ar fi fost realizat intr-un mod netransparent si necompetitiv", se arata in scrisoarea comisarului, datata 5 noiembrie 2012.
France has suffered a serious blow to its economic credentials after being stripped of its prized AAA credit rating by Moody’s.
The rating agency said France’s long-term economic growth had been hit by its inflexible labour market and low levels of innovation eroding its competitiveness and industrial base.
Moody's also flagged up the country’s exposure to the continuing eurozone crisis.
It warned the “predictability” of France’s resilence of further shocks in the eurozone was diminishing while the country’s exposure to the highly indebted countries such as Spain and Greece was disproportionately high.
In a statement Moody’s said:
Further shocks to sovereign and bank credit markets would further undermine financial and economic stability in France as well as in other euro area countries.
The impact of such shocks would be expected to be felt disproportionately by more highly indebted governments such as France.
Hello. And Bye.
Hello. And Bye.
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