THE EUROZONE IN THE CONTEXT OF NATIONAL UNITY AND THE PRINCIPLES OF GLOBAL DEMOCRATIC SOCIETY
Keywords:
Eurozone, sustainable development, SMEs and financial stabilityAbstract
Currently, the Eurozone (ZE) is in the midst of a large cyclical growth. Higher exports and improved expectations have prompted firms to invest more in equipment, as capacity utilization has been exceeded for some time and continues to grow and funding costs are very low. However, recent indicators, as well as industrial output, were surprisingly little affected and there were some turmoil in the financial markets, which suggests caution. The ECB will probably end its asset purchase program by the end of 2018, but it will only begin to raise interest rates in 2019. Fiscal policy in the euro area is less expansive this year, and France and Germany expect a notable fiscal stimulus for 2019. Overall, experts estimate Eurozone GDP will grow by 2.2% in 2018 and 1.6% in 2019. The accelerated wage dynamics will, together with the higher pricing powers of firms and the recent rise in oil prices, cause 2% in 2019. Uncertainty is, however, substantial, because a slight slowdown cannot be excluded, which would also affect the dynamics of inflation. The transition to the euro area of the countries of southeastern Europe will create a new challenge for the European space. The question is whether these states are fully prepared to switch to the euro? more at what parity of foreign exchange will this passage be made? how will national economies and the European economy be affected? These are some of the questions that we want to answer in this paper.
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