europe

=HAWK'S EYE on EUROPE=


 * The Week of September 15, 2008: Britain,

By Eleanor**

In Britain, Prime Minister Gordon Brown has been responding to criticisms of his leadership by asserting that globally, leaders are facing similar problems. He states that due to the current failure of the global economy, one would be hard pressed to find a leader who wasn’t struggling. However, this claim is not entirely true. While some leaders, such as the Prime Ministers of Spain, France, and Japan, are facing extreme problems and competition from other parties, in Germany and Australia, leaders are more popular than ever. However, Prime Minister Brown is alone in the sudden and dramatic fall in approval ratings from which he suffered only recently. 71% of his citizens are currently dissatisfied with his performance in office, even more than those whom are dissatisfied with the highly unpopular George Bush. His approval ratings have suffered the fastest fall in British history, due primarily to the credit crunch and rising prices. Though it is true that globally, citizens are frustrated by economic slowdown, Britain’s leaders appear to be taking more blame than most.

This article demonstrates how the global issues of a global economy and economic slowdown are affecting leaders around the world. Due partially to the slowdown of the United States’ economy, globally, prices are rising and citizens are feeling the strain of an impending recession. Understandably, they are blaming their leaders- some more than others. This creates newfound dissatisfaction and political instability. In fact, it has already caused Yasua Fukuda to step down from his role as Prime Minister in Japan. This political instability may create newfound obstacles in attempts to heal the wounded economy, but, if it results in turnover of leaders, it could introduce fresh blood and ideas to the global problems.

Other link: [|www.guardian.co.uk/politics/2008/aug/26/gordonbrown.economy]

Wheeler, Brian. "Global Popularity Contest." BBC News. 12 Sept. 2008. 13 Sept. 2008.
 * Work Cited**


 * By Kendall

UK town launches its own currency**

In response to rising prices, Lewes, England has decided to create its own local currency to keep profits within the local economy. Launched in September, this new currency cannot be spent anywhere else and around 70 local traders have already agreed to accept the currency. So far, the town has four outlets where the Lewes pound will be available. This is not the first time Lewes has launched its own currency; between 1789 ad 1895, Lewes created its own currency, originally planning to pay off Danish marauders. Though the town has recently dealt with some economic downturns, the town as a whole is wealthy. Transition Towns, a non-profit organization specifically designed to aid local economies, is in full support of the new currency because it relates to their own mission to help reduce high oil prices. Without the constant trade with foreign states, Lewes leaders claim that the local pound will actually help the environment by reducing frequent carbon emissions involved in trading. Though this idea may seem beneficial, managing director of the local Harvey’s Brewery, Hamish Elder, explains that unless the townspeople immediately begin to use and approve of the new pound, the business will not back it because it does nothing to further its own profits. Elder’s concern is felt by several business owners and townspeople as well. As Lewes Mayor Michael Chartier explains, this new pound was created specifically to encourage locals to shop locally as much as possible. Furthermore, the Lewes pound spent in a local business cannot then leave the community because it cannot be spent anywhere else, besides other local markets.

This new currency seems very idealistic – as shown in the BBC video, many locals are hesitant to use this currency because they do not see any benefits of doing so. Moreover, the fact that the new pound can only be bought from a few certain outlets and can only be spent in certain stores presents a considerable inconvenience. I found this issue especially interesting after having read an article on Vietnam’s extreme inflation the other week; it is shocking to read of such economic contrasts in different countries. While Vietnam could benefit from trading with countries, such as Lewes, the East Sussex town is focusing on keeping all money within its territory. Clearly when Lewes launched its own currency in the 18th and 19th century it did not work out so perfectly, seeing that was abandoned not long after it was created. Advocates of the Lewes pound even go so far to promote the change by saying that the relationships between the townspeople and local business owners will benefit from this change; this idea seems not only extreme, but a bit ridiculous.

”UK Town Launches Its Own Currency.” CNN. 9 September 2008. 14 September 2008. . “Lewes Launches its Own Currency”. BBC. 9 September 2008. 14 September 2008. .
 * Works Cited**


 * By Charlotte**

Europe is experiencing what the United States has been facing for a while, a fall in the economy. People in Europe are buying less than they did earlier in the year which is slowing down the economy heading into a recession. The inflation rate is going up which is very bad for Europe’s economy. In the second quarter the GDP for the euro has decreased and it hasn’t happened in a decade. Although more people are sending more euros the volumes are still low but it’s the amount spent on purchases has risen but is still lower than previous in the year. Also there has been a huge decrease in the real estate market because prices have fallen after being high for so many years. The major countries like Germany, Italy, Spain and France are spending less and together those four countries usually provide for the economic activity for eleven countries put together. The European economy is coming to a downfall which they can hopefully come out of but it goes to show that the economy all over has been affected.

In the United States we have experienced a recession for the past two quarters and it is not only us who are experiencing this. There is an issue all over the world economically due to the rise in supply and demand, gas prices, food issues, and the mortgage crisis. The actions of one country do not just affect just that country it can affect the entire world or the relations it has with another country. The real estate market in Europe is caused by what is happening in the United States with the mortgage crisis here. It also has to do with the euro being so low. It is very scary to know that a very developed country like Europe is having difficulties. Some of the most industrialized countries are spending a lot less and that is not giving a good example to other countries. But hopefully Europe is a strong enough country that they will be to pull out of the economic crisis.

http://www.nytimes.com/2008/09/06/business/worldbusiness/06charts.html?_r=2&ref=europe&oref=slogin&oref=slogin