- CNTV English - CCTV News

EU single currency faces grave challenges

09-14-2011 17:20 BJT

Watch Video

Play Video

More than 12 years after its debut on the international financial market, the euro seems to be facing its greatest challenge ever. The Eurozone sovereign debt crisis is raising concerns about the future of euro.

The eurozone consists of 17 states of the 27-member European Union. They are Austria, Belgium, Cyprus, Bosnia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

The euro is the official currency of all these countries. The Euro is the second largest reserve currency as well as the second most-traded currency in the world after the US dollar. But since the eruption of the sovereign debt crisis in Greece in December, 2009, the crisis has spread to Ireland and Portugal. The state bonds of the three states have been downgraded to junk status.

The European Financial Stability Facility has been created to help bail out these economies in crisis. Some analysts say the fundamental cause of the current crisis is the lack of a unified fiscal policy framework in the eurozone, despite the adoption of its single currency. Some economists also say Germany and France are likely to seek stronger leadership within the eurozone and push for the creation of stricter fiscal and monetary polices.

Editor:Zhang Ning |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program