European bailout was not enough to save the euro
The euro isn鈥檛 catching any breaks these days. It鈥檚 today fallen below $1.23, its lowest level since April 2006. NYU professor and Roubini Global Economics chairman Nouriel Roubini believes that the crisis in Europe is just getting started with Greece and more problems are already cropping up.
Bloomberg reports:
鈥淭丑别 European Union鈥檚 750 billion-euro ($931 billion) rescue package to stop contagion from Greece hasn鈥檛 calmed the markets while questions remain about whether governments are strong enough to implement the austerity measures required, Roubini said. The European Union said today it has transferred the first instalment of emergency loans to Greece, one day before 8.5 billion euros of bonds come due.
鈥淢arkets remain concerned about the solvency of some European countries as there is 鈥檚ignificant economic and financial trouble in the eurozone,鈥� Roubini told the BBC鈥檚 鈥楾oday鈥� program. The recent riots in Greece in response to fiscal cuts have fueled doubts about some European governments鈥� ability to solve these problems, he said.
鈥溾�橳here鈥檚 a question mark whether we can be confident the government is going to be strong enough to do the fiscal austerity,鈥� Roubini said.鈥�
The bailouts have begun to rain down on Greece from the European version of Bernanke鈥檚 helicopter, and there should be motivation for the austerity measures to take hold. Yet, the citizens are fighting their diminished government support tooth and nail as they鈥檝e grown accustomed over time to expecting handouts. It doesn鈥檛 bode well for the rest of Europe鈥檚 already shaky states 鈥� or the European Union itself 鈥� if Greece manages to fumble this bailout.
To read more of Roubini鈥檚 thoughts visit Bloomberg鈥檚 coverage of how .
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