Those who have booked our Europe Tours from India, need to pay part of their tour amount in Indian Rupees and part of their in Euro currency.
The Indian rupee portion (INR) goes towards your Airfare and visas. Whereas the Euro portion goes towards your hotel, Transports Meals, Sightseeing’s etc arrangement in
There is a huge fluctuation in price of Euro in last 3 months. See the graph of Euro Vs INR.
SRC: Yahoo Finance
You will find that Euro price has gone down from the high of Rs. 81 Euro to Rs. 68 a Euro.
What is the reason for this downward trend.
European union consist of very rich countries like, Germany, France, Sweden, Denmark, Norway etc.
Countries like Spain , Italy etc do not have but still sustainable economy.
Greece in which EU has a very weak economy.
Greece has a national deficit equivalent 12% of its GDP. To compensate that it held a debt of 318 Billion Euros, sponsored by its strong partners from the EU.
The strong partners have put conditions to restrict Greece from overspending on its public system and from providing extravagant social spending in order to crub the deficit for the country.
After the left wing Syriza party led by Mr. Alexis Tsipras won the election in January 2015.
Mr Tsipras has pledged to the nation that despite the deficit he will start and continue with the populist measures and give benefits to the citizen even at the cost of risking EU membership.
If that happens the deficit will not be controlled and that would increase the pressure on Germany-France and Scandinavian countries, since those are the countries which are financing the deficit for Greece.
They are taking a strong objection to Greeks spending money beyond its means. Greeks are not ready to stop spending even if that means them leaving EU.
All this has led to tremendous crisis of confidence in whole EU.
This has led to their currency going down to 20%. But, every problem has an end and a solution.
We believe, that some solution will be soon found and if that happen EURO will gain a lot and that is the reason we recommend buying a EURO for tours.
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