Finance Officials Begin to See Progress in the Eurozone

The euro made a positive comeback on Friday morning trading at 1.2972, a steady gain after a week filled with losses. Standard & Poor's choice to downgrade Spain's credit rating to just one level above speculative gave the currency a heavy hit earlier in the week. The downgrade, based largely on the nation's reluctance to take the next step and ask for aid, has put downward pressure on the common currency as well as the Spanish government itself. Spanish officials are also dealing with the latest consumer data, which showed that consumer prices have been increasing at their fastest rate in over a year. This news only darkened the already gloomy picture of Spain's struggling economy. Also cause for investor speculation was news from Reuters on Thursday in a report that detailed German criticism of the European Central Bank's bond buying plan. While many have regarded the plan as a “way out” for countries like Spain, Germans believe the plan could sink their own economy, as they are some of the largest contributors to the bailout money. The German economy has been one of the few European economies to weather the storm thus far, however the country's economic growth has been slowing. With all of these issues on the table, Bloomberg reported that finance officials from around the world met in Tokyo this week and responded optimistically to the eurozone's progress toward debt resolution. German Finance Minister Wolfgang Schaeuble claimed that since 2009, the eurozone's fiscal deficit has been reduced by 50 percent. While the region is still considered a threat to the global economy by the International Monetary Fund, it seems IMF members are looking at the progress the region is making in a positive light.