Should EU Help the PIIGS?

Should EU help the PIIGS? To begin with, do you know the counties called PIIGS? They are called “PIG” by Americans and British people. The word means an insult. How cruel a word! So we will introduce the countries that are called PIIGS. “P” is PORTUGAL “I” is ITALY The other “I” is IRELAND “G” is GREECE “S” is SPAIN By the way, there is a reason they have come to be called this. PIIGS are countries where the possibility that the improvement of finances and the financial section cannot be achieved only by the power of the home country after the world finance crisis. If the finance crisis happens in these countries, the economy might become unstable. Then, I want to explain today’s economical situations of the countries. First, Portugal. Until recently Portugal's optimism that the fiscal reconstruction could be done by itself was superior. The deficit reduction idea was voted down in the assembly to which the opposition party, who followed public opinion, commanded a majority last month. Next, the economy of Italy. Italy is a country whose recession has lasted for some decades. The unemployment rate for the young is high. So many young look like they have nothing to do, but, in fact, they cannot find jobs, not because they are lazy. The lira, which was the currency, had caused inflation. Now it seems to stop increasing. It is not rich at all though it is a state that appears to be escaping from its prolonged recession gradually. It is especially because the southern part is poor. The young people in the southern part are moving to the northern part for work and it often causes worries in the towns in the southern part because of depopulation. Then, Ireland The capital of Ireland, Dublin, is a city where prices are high, and it rose in the investigation in the fiscal year 2003 to 2nd place. The economy of Ireland is more small-scale than other European nations, and greatly depends on international trade. The economic growth rate from 1995 to 2000 was about 10%, and it became one of the countries that had accomplished economic growth most in the world. And, the inflation rate the last few years changed from 4 to 5% along with the good economy but it decreased to 2.3% in fiscal year 2005. The unemployment rate remains at low level, and income is increasing well, too. Last, Greece. The change of power was done in Greece in October, 2009. The concealment of the fiscal deficit that the former regime had done under Georgios Andreas Papandreou, under the new political power was clarified. But the fiscal deficit of Greece was announced as about 4% of gross domestic product so far. It swelled actually to near 13%, and the outstanding obligation rose to 113% of gross domestic product, too. Then, stock prices were influenced, too the stock price average of every country in the world fell, and the euro fell against a lot of currencies, too. As we explained just now, the PIIGS have such problems. Then, we have an opinion about whether the EU should help the PIIGS. You may think the EU should help neighboring countries which are in financial difficulties because the EU is a big organization. If the EU helps some counties in the trouble, their economic condition will become better. Those countries will support the EU when it is in trouble in return. However, do all countries in EU agree with helping PIIGS? If you assumed that it was a member of the organization that you are composing the group of 27 people, Might it reach consensus? So it is difficult for the EU to help the countries. Therefore, the finances of the EU will become severe because the EU’s money begins to drop due to helping the PIIGS. We think that helping them is good, but the EU will be regarding its economy as questionable next. And it is repeated, the world will have many problems forever. Under the present conditions, Germany says “I don’t want to help the PIIGS.” But the EU thinks we should help some countries. This is why it comes to have to do something by itself. We are for the idea. We think the EU should not help PIIGS. .

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