Finland Bank says Euro fall due to greek crisis

March 23, 2010

According to the Bank of Finland, the current reason for the Euro fall in price is due to the Greek financial crisis.

The Bank of Finland continued to say that the Euro has been hit because of the risk of growing debt in certain European countries and the poor management of finances especially in Greece has led to the fall.

The Greek government has been unable to reduce the amount of deficit in the national budget, this has caused more people borrowing and ended up pushing down the Euro to 5.6% against the US Dollar. The prime minister for Greece, George Papandreou is hoping that the European leader will help the country out with a financial aid package, to ease the problem and get the Greek economy again moving. The Greek’s so far have used three emergency packages which they had hoped would reduce the budget’s deficit totalling around 4.8 billion Euros in cuts made.

‘Not knowing the how the economy will be growing in the next few months and years is worrying especially when states are growing in debt, we are all using other currencies such as the Japanese Yen and the US Dollar for a safe haven’ the Bank of Finland said.