Subscribe free to our newsletters via your
. Earth Science News .

Southern Europe fears eurozone downturn
by Staff Writers
Madrid (UPI) Jul 15, 2013

disclaimer: image is for illustration purposes only

Eurozone troubles are not yet over and a new downturn could target southern European economies struggling to fire up growth and productivity, the latest cumulative EU data indicates.

Despite Portugal's reported small shoots of recovery, the entire swath of southern Europe, including Italy and Spain, is seeing jobs disappear amid a construction downturn.

Overblown real estate prices were one of the chief reasons for the banking crisis in Spain, requiring an EU bailout and severe austerity cuts, but cautious moves toward real estate regeneration have yet to show results.

Italian construction industry leaders said the sector is facing its worst crisis since World War II.

About 690,000 people lost their jobs as the construction industry contracted in Italy, the BBC said, citing Italian data. At least 11,000 companies collapsed in Italy amid a deepening downturn in the sector.

Construction industry failures in Spain are said to be much more widespread but latest data are scarce, partly because state data collection is paralyzed by the downturn.

Both Spain and Portugal are also facing political crises, some linked to corruption and mismanagement allegations, others rooted in the inability of parties to reach consensus on key issues. Reports in the Spanish press that Portugal may be negotiating another EU bailout were denied by European Commission officials.

The El Pais newspaper in Madrid said talks were under way to facilitate Portugal's smooth transition from the current bailout program. Portugal's more immediate problem, however, is healing a political rift that threatens to disrupt the austerity program and a successful conclusion of the bailout terms by next June.

Portuguese President Anibal Cavaco Silva is under fire for complicating politicians' efforts to forge a working relationship and move forward with the austerity package. The president's intervention threw markets into turmoil, feeding speculation a resulting stalemate could force Portugal back to Brussels for more help.

Spanish politics also threaten to derail the country's economic recovery amid allegations implicating Prime Minister Mariano Rajoy in a bribery scandal. Rajoy denies the allegations.

Rajoy's political troubles compounded Spain's economic woes amid warnings the country's steady brain drain toward Latin America would hit the infrastructure and delay recovery.

A survey by the Accenture suggests it's not all doom and gloom. A report by the consulting firm said new research shows the eurozone crisis is drawing global companies to Europe in search of acquisitions and new investment.

Two-thirds of respondents in an Accenture poll and accompanying report said the eurozone crisis could be an opportunity for organic and inorganic growth.

Fifty-six percent of 450 global executes surveyed said they have accelerated their investments in Europe as a result of the crisis. The report was published in late 2012 and updated for this year.

Analysts said the results of renewed investment from outside the EU could take some time to take effect.


Related Links
The Economy

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

China growth slows to 7.5% in April-June: govt
Beijing (AFP) July 15, 2013
China's gross domestic product expanded 7.5 percent in the April-June quarter, official data showed Monday, a second consecutive slowdown in growth as worries mount over the health of the world's number two economy. While the figure is in line with a median forecast of 10 economists surveyed by AFP, it follows a series of weak numbers pointing to trouble in the Asian giant, with analysts say ... read more

Man who battled Fukushima disaster dies of cancer

Fukushima radioactive groundwater readings rocket

REACTing to a crisis

RESCUE Consortium Demonstrates Technologies for First Responders

Cool it, quick: Rapid cooling leads to stronger alloys

Bioengineers Use Adhesion to Combine Silicones and Organic Materials

NASA's OPALS to Beam Data From Space Via Laser

Experts row over 'earliest' Chinese inscriptions find

Cloud brightening to cool seas can protect coral reefs

Sharks stun sardine prey with tail-slaps

Lionfish expedition: down deep is where the big, scary ones live

Habitat loss doubles coastal flood impact - study

As ice cover disappears, life in the frigid Antarctic moves fast

Antarctic Glacier Calves Iceberg One-Fourth Size of Rhode Island

Russia says evacuation of polar research station to cost $2 million

The contribution of the Greenland ice sheet to sea-level rise will continue to increase

Whole chickens from farmers markets may have more pathogenic bacteria

In US, struggle against snakehead ends on plates

Getting to the Root of the Matter

US farm subsidy policies contribute to worsening obesity trends

Ecuador volcano registers 'strong explosion'

Typhoon kills three, forces evacuation of 500,000 in China

7.3-magnitude quake off Antarctica, no injuries

Almost 6,000 people missing in India floods presumed dead

Madagascar villagers accuse army of mass killings

Guinea jails two for life for attack on president

Kigali says two mortar bombs fired into Rwanda from DRC

Tanzanian charged for smuggling over 1,000 elephant tusks

Genetic evolution seen in peoples living at high altitudes

China island centenarians claim secret of long life

Did Neandertals have language?

How well can you see with your ears? Device offers new alternative to blind people

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement