The debt crisis in the Eurozone is one of the biggest concerns for the global economy. In addition to the debt crisis, the eurozone now must contend with new political turmoil on the direction needed to fix the problems at hand.
A new group of politicians have been elected in the Eurozone, including Francois Hollande, who will replace Nicolas Sarkozy as the president of France. Sarkozy worked closely with German chancellor Angela Merkel to impose austerity measures on the rest of Europe. However, Hollande is vehemently opposed to any type of austerity. He said that France needs to increase spending and make whatever concessions needed to improve the direction of the economy.
Chancellor Merkel insists that 25 nations have signed an agreement, which includes a set of strict austerity measures. She said that the terms of that treaty are not negotiable.
Although many people have been criticizing Merkel, even so far as to reference her to Adolf Hitler, others sympathize with her position. Germany has been responsible for many of the bailouts to the Eurozone nations that are struggling to meet their financial requirements.
This leaves politicians bickering over whether they should resort to austerity measures or increased spending. Although the austerity measures have been creating massive havoc on the struggling eurozone countries, increased debt spending could lead to even greater economic instability. However, without some uniform agreement on what direction the continent needs to be headed, the eurozone will not be able to implement the changes necessary to reform the financial situation and create new stability for the eurozone.
Since the politicians leading France and Germany are headed in different trajectories, Germany will be responsible for controlling the debt crisis. However, the other countries in the Eurozone are starting to rebel against Germany and the austerity measures it is forcing upon them. As the economic situation gets worse, this could lead to additional worries. According to some economists, the chances of at least one nation leaving the eurozone in the next couple of years is now over 50%.
Nations throughout the world are hoping that the Eurozone can come to a solution before things deteriorate any further.