As a result of the stagnation in the eurozone, the economic crisis in Russia has worsened considerably. Faced with a looming recession, the Kremlin is preparing massive cuts in social spending. The signs of an incipient recession have been mounting in recent months. Due to falling oil prices, the rouble has fallen against the dollar since March by a total of about 13 percent. For this reason, there was a run on foreign exchange offices in Moscow in early June. The shares of several large companies and banks, including those of state-owned Gazprom, crashed on stock markets by up to 20 percent. http://www.wsws.org/articles/2012/jul2012/krem-j12.shtml
Just over a week after the European Union summit, at which the government leaders spoke of growth and an end to austerity, all European governments are preparing to implement massive cuts across the continent along Greek lines. In Greece itself, despite the deep recession, further cutbacks are being pushed through.
Last Friday, Andonis Samaras delivered his first substantial parliamentary speech as the new Greek prime minister. He not only assured the so-called troika—the European Commission, European Central Bank (ECB) and the International Monetary Fund (IMF)—that Greece would fulfill all previously agreed cuts, which include cutting 150,000 public sector jobs. He also announced further privatizations and structural measures.http://www.wsws.org/articles/2012/jul2012/gree-j09.shtml