Greece, Spain Continue to Weaken Eurozone

Greece and Spain continue to weaken the eurozone while Germany defends the policy of fiscal discipline it’s foisting on the member nations.

On April 24, the Bank of Greece warned that the country faces a worse-than-expected recession in 2012, with the economy set to shrink 5 percent. Tough conditions demanded for rescue loan deals have pushed Greece into a fifth year of recession and brewed widespread popular discontent.

On the same day, Spain raised nearly us$2.6 billion in an auction of short-term debt by paying much higher interest rates than normal, a sign of investor wariness.

In response, German Chancellor Angela Merkel urged Europe to stick with its pro-austerity policies in spite of the latest political uncertainty.

Financial markets in the eurozone were shaken on April 23 by concerns that an agreement on strict deficit targets agreed to by European leaders earlier this year was beginning to unravel.

French Socialist François Hollande, who has pledged to renegotiate the pact to give greater emphasis to growth, edged ahead in Sunday’s first round of presidential elections.

Every member of the 27-country European Union except Britain and the Czech Republic signed the treaty, but most EU members still have to ratify it, leaving the status of the treaty far from certain.

“This is the biggest issue of all, this is the issue that the Europeans have faced for the last two years, which is: Who is going to propel the eurozone out of this crisis and with what measures,” said economics analyst Peter Gumble in an interview with Associated Press.

While analysts and pundits may wonder, the Trumpet has always known which country will provide the leadership to propel the eurozone out of its crisis: Germany. Bible prophecy states this clearly. For a more detailed explanation, read our article “Europe Begs Germany: Please Rescue Us!