THREATENED crisis ZONE IN EUROPE 2010

THREATENED crisis ZONE IN EUROPE 2010

Frankfurt, SUNDAY
Economic conditions in the euro zone in 2010 was threatened debt crisis. The signs of this danger was sounded and the government plans to control the debt swollen.
Government loans are a major user countries with 16 currencies that the euro against the crisis last year. The level of debt was almost past the restrictions applied by the European Union according to the stability and growth pact.
Based on reports from the European Union published in the week (3 / 1), increased budget deficits and low growth that supports the increasing public debt. The average public debt could reach 48 percent of gross domestic product (GDP) in 2010. That number means an increase of 18 percent in 2007, while the public debt limit under the treaty amounted to 60 percent.

Ranking fell
Public debt ratings also caused a decrease in Greece by three international rating agencies. Because debt downgrade also occurs on the French and Spanish.
Germany is known as the state of discipline in maintaining fiscal stability will increase public debt to 78 percent of GDP this year. While France, the country with the second largest economy in the eurozone, public debt reached a record of 75.8 percent of GDP in the third quarter of 2008. Greece says that public debt will reach 120 percent of GDP in 2010.
This increase in debt is a consequence of the borrowing countries when facing crises. With the level and still weak economic growth in 2010, officials can not rely on tax increases to help pay for these debts.
"The economic crisis that sustainability burden public finances and potential growth", said European Union Commission has been warned by economists that there remains the possibility of recession this year. Public finances will be more severe due to an aging population that requires higher health costs in the future.
However, fiscal tightening as promised by some governments may hamper economic growth if the officials had acted too quickly.