A fiscal cliff is set to knock the US deeper into recession and this is expected to also add pressure to the Eurozone economies battling a deepening economic crisis. Federal Reserve Chairman Ben Bernanke has used the term 'fiscal cliff' to describe several big fiscal events set to occur in the US at the beginning of 2013 when terms of the Budget Control Act of 2011 are scheduled to go into effect, a combination of spending cuts and changes in tax laws including the introduction of tax on healthcare that will impact all Americans.
The Eurozone debt crisis, which began in Greece in late 2009 and reached Italy, Spain, and France last year is spreading further and deepening. To battle the crisis EU governments have adopted harsh austerity measures and economic reforms. This approach has already triggered incidents of social unrest and massive protests across Europe. The jobless number there has hit unprecedented highs with a record 18.2 million people now unemployed. The IMF chief economist recently said that Euro countries would be dealing with this dismal economic crisis.for a decade at least.
No comments:
Post a Comment