Many Europeans were quick to blame America for starting the global recession. It's true that too many US homeowners over borrowed from overzealous banks, but we've since discovered that whole countries in Europe could be accused of doing a similar thing.
To get through the financial crisis, many governments borrowed more. Some may have gone too far. Greece is now struggling to keep up with its debts, and that's shocking to investors who didn't expect to hear that from a Eurozone country.
They would normally be more than happy to lend to a country like Greece by buying bonds. Now investors are thinking twice because they see a risk in getting their money back. Not only that, they are wondering if other countries are just as risky.
You don't have to go far to see that Portugal, Ireland and Spain all have very high deficits. Even the UK, a major world economy, may have been cavalier with its finances.
So far, the Greek debt crisis is just that – Greek. But if neighbouring countries go the same way, it will be a huge test of the Eurozone.
How do you set one interest rate across a zone where one part is sinking into recession whilst the other is trying to recover?
Eurosceptics have long argued that if you are going to have one interest rate you also need to set one central budget. In the Eurozone you have one interest rate and many budgets. That's why a single currency works in the US and why it doesn't in Europe, as Greece is proving.
We want to know what you think.
Do you think the Euro was a bad idea?
Tune in to CNN on any given day, or to any other network for that matter, and there’s a good chance Toyota’s recall troubles will be near the top of the newscast. Whether it’s sticky gas pedals, bad brakes or new government investigations, the world’s top automaker has given news media plenty of material.
Media coverage has been intense , with much of the focus on what Toyota knew, when, and why they were so slow to react. What started as a recall has turned into a full-fledged scandal. And all the attention is raising questions about whether the company, and Japan for that matter, is being treated fairly.
The issue is clearly on the minds of some in Japan. Government minister Mizuho Fukushima said in an interview with Bloomberg News last week if Toyota had responded sooner, it wouldn’t have resulted in Japan and Toyota bashing. There are those in Japan who suggest the U.S. response was really an attempt to discredit Japanese car makers and boost domestic ones.
True, Toyota’s troubles seem to have evolved far beyond automotive shortcomings. They’ve evolved into a PR disaster. Lawsuits have been filed, government investigations are underway, and U.S. lawmakers have jumped into the fray.
It shouldn’t be a surprise that discussions about Toyota’s recent woes have moved beyond the cars themselves. Companies can be more than just a business. Take the recent takeover battle between Kraft and Britain’s Cadbury. For some in the UK, Cadbury was more than just a chocolate maker, it was an icon – and they were less than thrilled about a U.S. corporate giant swallowing it up. In Japan, Toyota is more than just a car maker. It’s a company that symbolizes the nation’s rise to economic might – a pillar of Japan Inc.
But underneath the politics, the rhetoric and the pride , there is something that shouldn’t be forgotten. Recalls can be serious business, especially if the problems raise safety concerns. And, unfortunately for Toyota, these problems do. Is Toyota the victim of a bandwagon bashing? Maybe. In the end does it really matter? No.
Toyota may be a Japanese company, but it also is a global company operating in an age of 24-hour news cycles, Twitter and Facebook. To maintain its position as a global leader, it must maneuver in the modern media age with same drive that turned it into the largest automaker in the world.
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CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.