Why is strict
?Pressure from the bond market. Investors have become nervous about keeping debt in many eurozone countries. This has pushed interest rates and increasing the risk of a liquidity shortage.
Yield bond (EU bond yield)
Worried about debt problems. Recession of 2008 that led to a budget deficit up sharp all over Europe, combined with the crisis in credit and liquidity more fear these deficits have become harder to finance
.Issue long-term debt, some countries have a long-term structural balance that has worried the market, for example, even before the crisis, Greece has found, and save the poor of attracting sufficient funds. Countries such as Italy have rates exceeding the budget. (Population causing increasing pension but lower taxes)
.Commercial banking losses in the case of Ireland Irish Government took in significant losses from its own commercial banks. However, by the private bank debts on The Government has become too big one itself. One reason that the Government remove a bank debt on the Irish Irish is that other European banks may have to face a very high risk losing Irish banks have failed.
"' Financial ' Union concerned over EU debt crisis has responded by threatening to leave the Treaty of Lisbon, and harsher penalties on the country elegance that exceeds the budget limit
.Will the political? There are many ' old value. It does not have ' thoughts now influence the UK Conservative party — who are keen to make the bold cuts spending in the first year of Office. Of course, in the United States Called strict.
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