Greece and France Face Mounting Pressure As Their Manufacturing Industry Declines

Greece has accumulated huge amounts of debt over the past few years and has been unable to come up with a strategic plan to prove how it plans to repay its debt and help its struggling economy to recover. The European Union is considering the possibility of removing Greece from the EU zone and has given Greece a limited amount of time to convince its debtors of its repayment plan.

Greece had more bad news when a recent survey revealed that the country’s manufacturing industry is in severe decline and a number of workers could lose their jobs. The survey which was conducted my Markit revealed that France’s manufacturing industry is in a similar position to Greece and warned that France’s economy could start falling very fast.

In a statement Jack Kennedy, senior economist at Markit said “The French manufacturing sector remains locked in reverse gear. Production levels were cut at an accelerated rate amid a steeper decline in new orders. This was despite a further fall in prices charged and the recent weakening of the euro, underlining the competitive challenge facing firms.”

The European Central Bank had come up with a €1.1 trillion bond-buying programme caused the Euro to fall but proved to be of little help to France. Both Greece and France will have to implement a different strategy in their manufacturing industries to ensure that not only do they recover in quick time but also contribute to the development of their economies respectively.