Public debt crisis in Europe (also known as the eurozone crisis) as the debt crisis for years, which was taking place in the state of eurozone members states since the end of 2552, these states (Greece, Portugal, Ireland, Spain, Cyprus) can not use debt or formation. the new debt repaying old debts owed to the government or its bank loans, which are funded from the state without the help of external parties such as the European financial stability Fund (EFSF), the European Central Bank or the IMF. Only Greece has defaulted on its debt in 2558 after the debt reduction in 2555 and other measures since 2553 to 2558
from late 2552 fear debt crisis started among. invest As a result of the private and public sector debt levels are rising worldwide. Together with a reduced level of government debt in some European countries. The cause of the crisis varies by country private sector debt in many countries due to the transfer of private debt to public debt from the real estate bubble. By providing financial support to the banking system and serve to slow the economy after the bubble burst, the government in Greece, public sector wages and pension obligation unsustainable debt even higher. The structure of the eurozone is a monetary union. (Single currency) without fiscal union. (Public pension and tax rules differ) contributed to the crisis. And European leaders failed to respond to the problem.
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