Asserted that the Euro Over People Miscalculated
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Recent EU summit in Brussels, destined to leave the history in the euro zone a thick. This is the end of 2009 to the first half of 2010 the euro zone sovereign debt crisis, EU leaders to address the euro-zone system defects, and further consolidate the results of European integration, the highest-level meeting held. Ultimately strengthen the euro area member states summit fiscal discipline, the establishment of monitoring mechanisms and macroeconomic risk of permanent crisis response mechanism to create consensus. Not difficult to find, the euro zone sovereign debt crisis, as some people assert that not only did not it, indicates that "over the euro", but institution-building and for promoting the integration process in the euro zone the catalyst.
First half of 2010, the Greek government at the edge of bankruptcy, Ireland, Portugal and Spain, also in the euro area member states under the pressure of huge public debt, "shaky", a time, a variety of "sing the air" loud and clear voice of the euro area. Today again, these words proved unfounded, it is miscalculated.
Sovereign debt crisis of the current situation in the euro area has been controlled. In the euro area Member States and the IMF has introduced the Greek rescue plan 111 billion euros and 750 billion euros crisis stabilization mechanism, gradually restored the confidence of investors, and speculation was the convergence behavior.
Euro exchange rate from the point of view, the crisis in the market, "sing the air" have been calls for the euro, the euro against the U.S. dollar fell to a less than 1.20, but after that the euro bottomed out, investors confidence in the prospects for the euro zone is growing.
In this context, the EU means that the outcome of the summit, came 11 years of trial and error by the euro area, "adolescence" into the consolidated results of steady advance, "adolescence."
In the future, the euro zone will greatly reduce the risk of sovereign debt. Inherent when the advent of the euro area is that of a unified monetary policy, fiscal policy has not been uniform. Although "the EU stability and growth," convention, the euro area Member States fiscal deficit and public debt to GDP ratio should not exceed 3%, respectively, and 60%, but over the past 11 years, this standard was a mere formality, the euro District for violation of the provisions of the Member States means the lack of determination and discipline, leading to Greece, the debt soared, the brink of bankruptcy, and then a tremendous impact on the whole euro area.
Strict financial discipline in the future euro zone, member countries and other members of the budget will be a double review of the EU, once the violation, but also may be subject to severe punishment such as fines. The debt crisis in the euro zone bear substantial costs in Germany even suggested that members should be removed for violation of its decision-making in the EU the right to vote. Although the proposal was not adopted, but it showed that the eurozone countries led by Germany's system of correcting defects in the euro area the great determination.
In addition, the EU leaders are considering how to total 750 billion euros of its crisis stabilization mechanism permanent. Meanwhile, the EU member states will also increase the risk of macroeconomic control, sought to defuse the crisis in the bud. Although it is not easy to implement these initiatives, there is no doubt that the euro zone sovereign debt crisis through the "rebirth" of the situation is very clear. Crisis in the euro area has not been defeated and will be more powerful in a crisis.
In fact, the success of the euro area, China is not just standing on the sidelines, but has vital interests in them. The euro area as a pioneering work in human history, on regional economic and political integration has great reference. If the smooth progress of the East Asian region of China where the future of the Imagination "Community" and "Asian Dollar" will be a stimulus.
More importantly, the smooth development of the euro zone will provide a stabilizer for the world economy, the U.S. is good for balance. Eurozone inflation for the traditional importance of caution in monetary policy to control the determination of the fiscal deficit, are significantly more than the United States. Continuous depreciation of the dollar, bear the weight of the international reserve currency, the stable, strong euro and the euro, the Chinese expect the establishment of a world economic and monetary order, have important significance. |
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By :
Jessie Stone
Submitted
2010-11-06 14:39:00 |
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