Lead to European Debt Crisis Most Fundamental Reason
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European debt crisis led to the most fundamental reason is that the euro zone single currency policy and decentralized fiscal policy, poor coordination between the contradictions, the underlying risk is a major division of the euro area. Known as "Dr. Doom," said the New York University professor Nouriel Roubini is repeatedly warned that the collapse of the euro next few years, the probability is 30%.
The face of the "separation" pressure, the German economics minister Wolf (blog) Gang Schaeuble winter in December, said loudly: "The euro single currency will not fail in this, all the euro-zone countries are determined to defend it All those who bet on the decline of the euro will not succeed! "
Germany, the euro area known as the "Star of the economy", the outside world has been hoping to save the euro zone, Germany, the finance ministers and therefore enjoy the "Mr. Euro" in the title. However, the "Mr Euro" is to live up to its name.
Euro group president, Luxembourg Prime Minister Juncker and Italy for Economy and Finance Minister Giulio Tremonti has co-author, calling the euro zone countries jointly issued sovereign bonds in Europe to address the debt crisis. However, this measure has met with strong resistance from Germany. The German government is worried that if the United States and other euro-zone bonds, will be a member of the credit less drag, resulting in their financing costs. Germany's attitude is no doubt tell people, position and attitude is not one thing, the surface unity of the eurozone countries, each in possession of secretly selfish.
This also can be seen that the two major structural contradictions in the EU economy: First, the internal members of the development imbalances, and second, the single euro zone monetary policy and fiscal policy do not match their own way. The only unified monetary policy, fiscal policy was not uniform. Members of the region financial independence in the event of problems, in principle, can only help themselves, not behind the Euro Area and the financial backing.
So, Who is the chief culprit in this crisis? BMO Capital Corporation in Toronto, a senior economist Sal Guatieri in the interview with this reporter, said that no single individual should be attributed to the debt crisis led to the culprit in Europe. "In simple terms, free lending of creditors, there is no control of the borrower, the abuse of state assets, government, and dereliction of duty of the regulator, jointly contributed to the debt the big black hole in Europe." Gaite Rui said.
European debt crisis is far from over, but one thing is for sure, the crisis of economic governance, government intervention in social welfare, and many other profound impact on the Reform of the EU.
This year in September, the European Union formally adopted by the pan-European financial regulation bill, completely rewritten the members of the existing fragmented regulatory structure, to be completed next year with the world's first supra-national nature of the financial regulatory system, paved the way for.
To prevent the recurrence of the debt crisis as a fundamental policy, in October this year, EU leaders adopted a broad range of economic governance reform program, known as the euro, the most significant changes since the birth. In December the EU summit, EU leaders and participants on how to modify the "Lisbon Treaty" to create a crisis response mechanism of the euro zone reached a permanent agreement.
The devil always in the details, but we in this series of agreements, treaties, programs are difficult to find the "devil" tracks. In the Euro group president, Luxembourg Prime Minister Jean Junker view, the current EU leaders only outlines the general framework of the permanent relief mechanism, many details are uncertain.
Perhaps the solution is to once and for all broken down into individual euro-zone currency areas easier to control, but whether one wants to see the results. |
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Author Resource:-
Chris Holigan a professianl writer from , it provides the high quality products, such as CRI Tester, CP-60 Current Probe , test fixture, and many more.
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By :
Jessie Stone
Submitted
2010-12-31 06:28:26 |
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