The looming ”fiscal cliff” is sapping economic strength, Fed Chairman Ben Bernanke said, and that trend will only worsen if lawmakers cannot come to an agreement. The uncertainty surrounding the impending spending cuts and tax hikes has led companies to worry about an possible recession. Today’s graphic shows the increasing number of mentions of “fiscal cliff” in 2012 SEC filings. As you can see, November has see almost triple the amount of mentions compared to the previous three months.
By Andy Bruce, Polling Correspondent, Reuters
The euro zone’s new recession will extend until the end of the year and 2013 promises little better than stagnation, a Reuters poll of more than 70 economists showed on Thursday.
Conducted before Thursday’s data that showed the euro zone returned to recession in the third quarter, the survey showed only meager economic growth awaits the region over the coming year.
For the first time, economists expect the current recession to spill over into this quarter as well. The consensus was for a 2012 contraction of 0.5 percent and just a 0.1 percent growth next year.
With more austerity on the way across the continent, which sparked a series of general strikes across southern Europe on Wednesday, Europe’s leaders have left themselves few options to spur economic growth next year. (more…)
Greece’s parliament overcame divisions today to defeat an early challenge to an austerity package needed to secure vital international aid, but it still faced internal dissent and angry protests ahead of a final vote. Today’s graphic breaks down the austerity plan.
Political parties supporting Greece’s international bailout will begin forging a government today after an election victory over radical leftists off the prospect of the debt-laden country leaving the euro. The head of Greece’s New Democracy party began talks to form a government, giving him the daunting task of imposing austerity measures in a near-bankrupt economy while containing rising social tensions. Today’s graphic shows the results of yesterday’s election.
The first 21 billion euros was “low-hanging fruit”, the finance minister says. But the next 12 billion is already raising tensions. After four years of crushing austerity measures, public patience in Ireland is wearing thin. Click here to view this special report.
Yesterday, the Italian parliament gave final approval to the austerity plan aimed at fixing the debt crisis. Today’s graphic has the details for the plan. A combination of spending cuts, higher revenues, labor contracts, and constitutional amendments are the tactics used in the plan. Do you think it will be effective?