The stock markets fell again on Monday as uncertainty still seems to grip on the world economic market. The uncertainty seemed to have gone up again before the summit of European leaders which is scheduled to begin this week in Brussels.
The top European leaders gathering in Brussels will chalk out a strategy on how to boost the economic development and create more jobs to generate some hope among the people as that will result into more spending power and make the economy swing into positive direction. The situation still seems to be walking tight on the rope as every European government is marked by huge Government cuts in spending and that is putting many development works to a complete halt.
Data showed recently by the economists clearly shows that another European country Spain was also on the verge of recession. Technically speaking, the Spain economy is showing contraction or negative growth for two consecutive quarters this year. The Spanish economy is slowly shrinking during the last three months of 2011.
The meeting of the European leaders in Brussels may also come up with many encouraging proposals. They will discuss to frame a new treaty which will tighten the budget controls to make a turnaround. The economies are also seriously thinking of forming a permanent bailout fund.
But analysts are of the opinion that though the Greece bailout plan is not on the official agenda of discussion, the topic is bound to create some ripples at the Brussels meet. But Greece has been able to reach to an understanding with the private creditors which will help them to avoid being a defaulter during the coming spring. Investors who are having a $272 billion in Greek bonds can exchange them by having bonds which are half in face value of the bonds.