The analysts estimated as the priest, the cause of this condition being mentioned in the euro common currency is due to economies said they lost their competitive advantages due to the single currency, these countries will defend yakalayamayacaklarını again. In this case, the collapse of the country's next in a matter of time.
However, the situation can be more closely examined, this assessment is incorrect. Because of these economies has çatırdamasında different reasons.
Greece's economy has collapsed because of the worst managed in this country among the members of the OECD economy. The country is no longer a systematic state corruption, incorrect assessment of the risks of the markets caused by hiding the true financial position. Sack in the end, however, did not fit the spear and liabilities exceeded the tolerance level.
BANKING PROBLEMS IN IRELAND
On the other hand the conditions in Ireland rather than in the euro zone may find all she took the blow from somewhere else. The Dublin government has failed in controlling the banking system at the end of the corresponding 176'sına percent of gross domestic product was forced to take on bank debt.
Bank and contractor companies that inevitably this will happen if it does not control. In fact, once seen as a high growth rate of the Celtic Tiger in Ireland or even England and Germany may become debt.
Portugal also had the problem before the start of the global financial crisis. Portugal's economy is growing slowly, the growth performance between 1999 and 2008 remained below 1 percent. Portugal after Euro haunted by this problem, drawing concerns about finding a sustainable level debt.
PORTUGAL TO DO MORE
The Lisbon government, Greece and Ireland for not sharing the same fate as many of the structural reforms need to do more. Affordable for the euro zone the size of Portugal's debt problem is size of the inside of the authorities relaxed a little.
Representation of Business uneasy when it comes to economic growth of Spain as the head of a similar situation in this regard, of course heads the state constitutes the very busy.
This is an economy in the hands of Europe's 350 billion euro rescue program, in case it needs them the source, in spite of support from the IMF may not be enough.
SPANISH same bag FALSE ARREST
However, the markets in Spain, although the same par with other countries to put the above, by increasing borrowing costs cezalandırsa is that the good side of the business, it too has no basis. If you need it in a nutshell, the other countries mentioned in the same basket is not in Spain.
Because Spain's total gross public debt to almost half of the corresponding rate of hasılasına Greece has 64'ile percent. However, this ratio is only part of a 26 per cent by foreign investors. The remainder is taken from local investors. On the other hand, guarantee obligations arising from the Madrid government debt to GDP ratio of banks is not too much. This rate was 176 per cent in Ireland, Spain, does not exceed 5 percent.
Likewise, in Spain, the largest banks in emerging economies intensive activities abroad, in an emergency without having to load onto the government's disposal is also possible.
Of course, economic growth and unemployment in Spain, but still lives on the serious issues, what is the stock of debt to Greece, Ireland, such as what is irrelevant as the embattled banking sector in Portugal, nor is a government problem.
* This article is CNBC.com 'or, "Why Spain Is NOT Like Greece, Ireland, Portugal," compiled from articles published under the title.
No comments:
Post a Comment