Club Med happy days!

Club Med happy days!
Posted on July 07, 2012 |

Remember when Club Med was the in- thing, sun, sea and … Sangria! Just a relaxing time was had by all, everybody getting on well with each other, the only problem was the suncream, sand or no sand. Happy Days.

Now, Club Med is not a happy place,  Spain has announced a further increases in tax and benefit cuts amounting to another €64 billion. Social unrest is growing, and as the summer heats up, I am sure that there will be more clashes in Spain, and Greece.  Years of austerity ahead for them makes them wanting to blame someone.

Finland’s prime minister Jyrki Katainen, said yesterday, “The euro zone is in its most dangerous situation in more than two years, This situation is dangerous, very dangerous,”  Yet the North/South divide is beginning to open up. With Italy joining the Club Med group along with Portugal, and Germany, The Netherlands, Finland etc on the northern side.

You can see that I have left out France, and they are the crucial player. Hollande has arrived on the scene on a white charger, supporting demands of Club Med against mainly Germany. However his early promise is beginning to wane, France’s public debt rose by €74 billion in the first quarter of this year. It is purely a matter of time before France  will realise that they too will have to go down the austerity road.

Yet one country is turning this around, Ireland was on its knees, the people accepted terrible cuts, but they knew it had to be done. Now Ireland is emerging slowly from their banking crisis, with a multi billion euro growth package.

The eurozone saga will  undoubtedly stagger on throughout the summer, no matter if you are in Club Med or the North. The only difference will be the sun !!

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