Issue 21 - Summer 2011: European Debt Update
Sovereign debt concerns in Europe continue to be the focus of global investors. Many European sovereigns (Governments) have excessive debt as does the banking system. In recent months, the crisis has spread closer to the core of Europe. European finance officials urgently need to come up with a package that is supportive of Sovereign debt. European countries must seek to address trade imbalances and high labour costs which are likely to see continued social unrest, though this will improve their competitiveness and provide a longer path to sustainability.
Since the commencement of the Global Financial Crisis, most daily news reports include extended coverage of the economy and financial markets.
Given the stories we have seen about debt issues in Greece, and more recently the US double dip recession, slowing economic growth, rising prices and fluctuating share markets, you could be forgiven for thinking it is all bad news.
But if we take a step back and look past the “here and now” stories, there are some positive news for investors.
If you are an employee making personal contributions to superannuation and will earn less than $61,920 this tax year, you could be eligible for a government funded superannuation contribution of up to $1,000, at no extra cost to you.
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