THE EUROZONE SUFERS A MAJOR DECREASE OF TRUST
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The economic trust on the Euro Area registered in March a recess of 6 points over the previous month. This means a major deterioration of the trust in the heart of the euro zone since may 2010, after the first euro crisis which lead to the rescue of Greece, according to the published data of the European Commission.
The main countries showing distrust where Portugal, Spain, Italy and most importantly Germany which dropped 7 points.
The European Commission it self has come to the conclusion that “ The weaken trust in the euro, endangers the cohesion of the monetary union”
The difference in competiveness between member countries and the resulting imbalances give “ cause for serious concern for the eurozone as a whole”, according to a presentation given by the Directorate General for Economy and Finance to the finance ministers of the Eurogroup.
Brussels is concerned with the fact that the economic conditions of those countries, which in the pas had huge deficits in the account balances, that survived many years thanks to abundant credit available as a result of low interest rates, now are suffering huge government deficit. According to experts “the combination of declining competitiveness and excessive accumulation of public debt” present a negative perspective for this countries and in consequence for the rest of members of the zone.
The EU officials propose that “workers ambitions should be modest” adopting low wage settlements, like this helping to increase unemployment and also reduce government expenditure. Moreover the commission recommends, enabling more competition in the services sector, the introduction of tax reforms and the elimination of credit hurdles.
From my point of view it is good to see how the European Commission has finally admitted that there are problems with the Euro, after long silence at last the Commission is taking part on giving advice to countries with problem to keep up with the Euro.
I believe it is important to take into consideration the Eurozone imbalances, which were meant to disappear over time but with the crisis that process has been stopped, and the internal difficulties of many countries have been exposed now facing their own crisis plus the pressure of the Euro.
BusinessBar 
You wonther if Europe exist as a unit only economy wise and not even. We dont have anyting to do between each others. that is food for thought…
Meanwhile the UK – which did not go into the Euro – has been benefitting from the disarray and disenchantment with the Euro. If we had gone into it. some people say our economy would have fared even worse than it did.