FLGS – Global Finance Report

Frankfurt – European government this year seeks to overcome the financial crisis. Some officials expressed it borrows heavily from the first 16 countries out of recession.

Efforts are made to reduce the national debt level that could disrupt European stability and growth to the front.

As reported by the AFP, Sunday (3/1/2010), rising budget deficits, low growth and support the banking sector is a significant trigger factor.

“(The average in the European region have) public debt could reach 84 percent of GDP (gross domestic product) in 2010, up from 18 percent points from 2007,” said one official. Or even far above the treaty limit of 60 percent.

Ranking government debt has been downgraded in Greece by three major international institutions, including some neighboring countries of Ireland and Spain.

Agency, The Fitch has urged all governments to reduce debt levels, especially the British, who are not members of the “euro zone”, along with France and Spain.

Germany, long regarded as a trigger in the euro zone that has the discipline of their fiscal policies, public debt estimated at approximately 78 percent of GDP this year. While in France, which is the second largest country in the eurozone economy, has a public debt to a record 75.8 percent in the third quarter of 2009.

Greece said predicted state debt in the eurozone jumped to 120 percent of output in 2010.

With rising unemployment and weak economic growth is expected in 2010, officials can not rely on increasing tax revenues for much help in paying the debt, much foreign debt.

“The economic crisis is weighing on the sustainability of public finances and growth potential,” said the commission had warned the European Union as an economist is still open the possibility of “double dip” recession this year.