A severe financial crisis is threatening Europe. It gets worse by the day. As an indication of how deep the crisis has become, Moody’s Corporation, a world recognized credit rating company, downgraded five German banks on June 6, hitherto regarded as having triple A rating. It has been predicted by financial experts that unless the crisis is resolved in a few weeks the Euro will unravel, financial chaos will ensue and the recession affecting only some countries will spread over Europe and further afield.
There has been little or no discussion in our media or that of the Caribbean on the crisis or its potential impact on our economies. Not only do we have trading relationships with Europe on which many industries rely, but we receive significant inflows in aid and grants from the European Union which can be adversely affected by an escalation of the crisis.