Spain is the European country that the longer it takes to emerge from the crisis. Available data and forecast GDP growth are negative for 10 quarters ranging from mid 2008 until late 2010 , according to projections presented by the European Commission yesterday. At the end of next year, Spain is the only EU country that remains in recession, according to estimate Brussels.
By now we can clearly see the economic crisis is being much more destructive in Europe than in America, where the activity will fall 2.9% this year. Japan also penalized by the collapse of trade back down to 5.3% as estimated by Brussels. China still grow by 6.1%, a rate less than 9% in 2008.
Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said yesterday that "The European economy is in the midst of deep and widespread recession of the postwar period." But he said that "already passed the stage free fall ". In his opinion, the worst times were " the fourth quarter of 2008 and the first in 2009 "and maintained that the situation" is beginning to stabilize. "
Commissioner confident that" the ambitious measures taken by governments and central banks in these exceptional circumstances stop the decline in economic activity this year and allow the next recovery. "Brussels revealed yesterday that the impact of recovery plans throughout the EU for 2009 and 2010 will amount to 5% of EU GDP, a point more than estimated so far. The national recovery plans represent 1.8% GDP, the automatic stabilizers (lower tax revenue and more social benefits particularly to the unemployed), 2.7% and extra-budgetary measures 0.5%.
public intervention in the crisis, we must highlight the plans of salvation to banks and other financial institutions in 19 countries that have led recapitalization valued at 300,000 million euros and provided bank guarantees in an amount of three billion euros. On this point, Almunia stressed that "must be removed as quickly as possible the assets from the balance sheets of banks and to recapitalize the latter, in his case. "
According to Brussels, the unemployment rate in the EU is expected to rise to 9.4% of the population and in 10.9% the next. In 2010, Spain will reach 20, 5%, the highest in the Union. " We will do everything possible to not meet these expectations" , said yesterday the second vice president, Elena Salgado , before attending the meeting of the Eurogroup.
By now we can clearly see the economic crisis is being much more destructive in Europe than in America, where the activity will fall 2.9% this year. Japan also penalized by the collapse of trade back down to 5.3% as estimated by Brussels. China still grow by 6.1%, a rate less than 9% in 2008.
Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said yesterday that "The European economy is in the midst of deep and widespread recession of the postwar period." But he said that "already passed the stage free fall ". In his opinion, the worst times were " the fourth quarter of 2008 and the first in 2009 "and maintained that the situation" is beginning to stabilize. "Commissioner confident that" the ambitious measures taken by governments and central banks in these exceptional circumstances stop the decline in economic activity this year and allow the next recovery. "Brussels revealed yesterday that the impact of recovery plans throughout the EU for 2009 and 2010 will amount to 5% of EU GDP, a point more than estimated so far. The national recovery plans represent 1.8% GDP, the automatic stabilizers (lower tax revenue and more social benefits particularly to the unemployed), 2.7% and extra-budgetary measures 0.5%.
public intervention in the crisis, we must highlight the plans of salvation to banks and other financial institutions in 19 countries that have led recapitalization valued at 300,000 million euros and provided bank guarantees in an amount of three billion euros. On this point, Almunia stressed that "must be removed as quickly as possible the assets from the balance sheets of banks and to recapitalize the latter, in his case. "
According to Brussels, the unemployment rate in the EU is expected to rise to 9.4% of the population and in 10.9% the next. In 2010, Spain will reach 20, 5%, the highest in the Union. " We will do everything possible to not meet these expectations" , said yesterday the second vice president, Elena Salgado , before attending the meeting of the Eurogroup.
Almunia avoided ruling on whether new plans were needed for recovery, but warned that in the event that more initiatives were needed fiscal stimulus "should be coordinated at European level."
The adoption of new measures of public spending serious difficulties for real payment capacity of many countries, who have already seen unprecedented levels of deficit and debt. A total of 20 countries this year will exceed the 3% public deficit, which for the whole Union will be at 6% and 7.3% the next. Here, too, Spain is among those countries with more difficulties with a forecast of 8.6% and 9.8%, respectively, Almunia called "worrisome ." Ireland and the UK will reach 15.6% and 13.8% respectively, next year.
The cost of the crisis will also bill the next generation. Besides increasing the deficit, the difference between income and expenditure statements, the crisis is causing a sharp rise in public debt in 2010 will reach 79.4% of gross domestic product (GDP) in the EU and 83, 8% in the euro area, compared with 60% threshold required by the Treaty. The highest concern are produced in Italy (116.1%), Greece (108%) and Belgium (100.9%).
The Commission estimates that between 2008 and 2010 the increase of public debt is 18 percentage points. In 2008, the causes of this increase is the recapitalization of banks and credit companies, which account for 3.4% of GDP. For the period 2007-2010, aid to the financial and corporate sector represent 5.6% of EU GDP. On a favorable
include reducing interest rates, which have been cut 300 basis points to 1.25% in half a year and likely will drop again next Thursday.
forecasts Hopefully, in the negative, non-compliance and improve in the future. For now, unemployment figures have fallen this month of April.
0 comments:
Post a Comment