Related articles ~ *Two-speed Europe, or two Europes? .. and ..Eastern Europe Feels Euro Strain and .. Germany and France examine 'two-tier' euro ... ..and.. **The “two-tier” Euro. Class by currency? Euro and Gold? ... ..and .. France, Germany and Holland are planning new currency to follow the demise of the Euro ... ..and ..*What will Happen to the Euro?
July 29, 2012
North-South Divide Marks Euro's Struggle
In Portugal, Finland, Two Different Views of Financial Crisis
Portuguese waiter Gonçalo Alexandre Costa Ribeiro has a personal take on Europe's North-South divide.
"The Northern Europeans tip more than the Southern Europeans," says Mr. Ribeiro, 22 years old, who works at a sushi restaurant in Vilamoura, a beach resort in Portugal's Algarve region. "I guess it's cultural, but also has to do with the economic situation of the two."
Though Finland and Portugal share a currency, their divergent economic outlooks reflect the divide between the euro-zone's strongest and weakest members. Finland's economy is still growing, and unemployment is low. In contrast, Portugal is suffering a high jobless rate and entering a second year of recession.
Such disparities, central to the euro zone's financial crisis, are in the spotlight heading into a week that brings a closely watched European Central Bank meeting Thursday. Last week ECB President Mario Draghi and the leaders of Germany and France vowed to do everything in their power to save the common currency. But the Bundesbank, Germany's fiercely independent central bank, Friday repeated its opposition to the ECB buying government bonds to help the currency area's weaker members.
Full article HERE
