Event this week - Assignment Example

Event This Week Event This Week Budget is one of the biggest events of the week, with the United Kingdom’s Chancellor reading the budget. The main event to note was the statement that British economy was under serious threat from the fluctuating oil prices and Greece. The Chancellor announced the growth prospects of the region in a much anticipated budget-reading session.The reason for an unstable relationship between Britain and Greece is Greece’s financial crisis. The country has in the recent past threatened to pull out of the European Union.

The exit from the Eurozone is being pushed by the new Greek government. This Greek government has fallen into conflict with other European countries after failing to honor previously set agreements. Moreover, there is a plunge in oil prices. This plunge will affect the British economy if it persists since the foreign exchange created by the sale of petroleum products will fall to low levels. The drop in the oil prices has brought a crisis in many oil-producing countries due to the low concentrations of income generated.

It has also brought confusion in Futures markets and international stock exchange markets. Trading in oil and its products is becoming unpredictable and economically risky (Malcolmson, 2014).This collision with Greece implies that Britain will have one less trading partner. This change calls for urgent economic policy modifications and analysis to evaluate the best ways to move forward after the exit of such a crucial player in the Eurozone. An EU summit is expected to resolve this issue and come up with a reasonable solution (Fahrholz, 2007).

This decision will affect the economic relationship of Greece with other countries that trade with Britain and other European nations. Some friends of Greece might decide to support them and break their trading ties with other European countries if Greece pulls out of the Eurozone. Others might decide to break their ties with Greece by weighing the benefits they will get when they trade with Britain, compared to trading with Greece only.This event helps students undertaking this course to understand the need of trading partners.

It also touches on the effects of breaking trading ties due to failed contracts. The reading of a budget is essential in understanding and explaining a country’s current economic status. It also outlines future economic prospects and their intentions towards developing the country’s economy.ReferencesNick, F. (2015, March). Budget 2015: Oil Prices and Greece Threaten British Economy. The Guardian. Retrieved from http:// http://www.theguardian.com/politics/2015/mar/18/budget-2015-oil-prices-greece-british-economy-osborneFahrholz, C. (2007). New political economy of exchange rate policies and the enlargement of the Eurozone.

Heidelberg: Physica-Verlag.Malcolmson, S. (2014). Priorities for Budget 2015 -- BC Ferries. Victoria, B.C.: Islands Trust Council.