Wednesday, July 15, 2015

A Diplomatic Nuclear Agreement Relying on Diplomacy Could Relaunch Global Economic Growth




Historic Nuclear Agreement with Iran

Today’s historic nuclear agreement with Iran could be a turning point in the recovery of the world economy.  The idea that the economic reaction to geo-political tensions significantly affects global markets is not a new one.  However, commodities such as oil are expected to keep a study price in the best case with a decreasing trend at least for the next months.  The historic agreement has a starting scope of ten years and upon compliance Iran is liberated from previously existing economic sanctions.

This is a very important diplomatic success for the economic communities involved in the agreement. For the USA, in particular, it is an important achievement that comes just weeks after reestablishing economic and diplomatic relations with Cuba.  The geopolitic and socio-economic impact of the these two deals will soon reflect positively in the global economy.


Will Greece stay in the Euro Zone?


Greece got a third chance for repaying her debt after an European Summit this week.  The plan was laid by German Chancellor Angela Merkel. The greatest opposition against Greece’s economic proposals for repayment came from Finland, today pursuing conservative points of view with a forgotten USSR-oriented past, which had given the expression “the Finlandization of Europe” such an specific  connotation during the cold war. But at the same time, Greece’s referendum results seek an exit from the Euro Zone, which will not release them from their debt. Perhaps that could be the best solution for the global economic stability, but not for safety of the region.




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