Greek debt crisis alarm bells ringing in the International Monetary Fund (IMF), the European Commission's proposal, European countries have introduced austerity plan. The European Commission has 27 members on the issue of deficit reduction of 23 submissions. The most difficult task of Greece and Ireland, was proposed five years down the fiscal deficit-GDP ratio of 10 percentage points; even if the financial situation can be quite strong compared to Germany, has also been proposed to reduce from next year, 0.5 percentage points per year.
A common practice is to freeze or reduce public sector wages. Greece to cancel the original "the first 13 months and 14 months" wage, Spain and the Portuguese Government to cut staff wages in the public sector 5%, Ireland to cut 15%, Romania will have to cut 25%. Within the next few years, these countries will no longer be open to the public sector job recruitment, Portugal now provides that every public sector retirement three to new tactics to one person; Italian request "back five" to "further."
Europe proud of the "social safety net" has become a huge problem. Spain, Ireland abolished the newborn child-care allowance, Portugal reducing allowances to low-income families. Increasingly heavy burden on the pension system is more difficult to sustain the pension system reform has become a major multi-national forum austerity program - but this practice is often met with strong protests from trade unions, this month for the two rounds of the French national strike , has made support for President Nicolas Sarkozy dropped into the abyss.
Public investment projects put on hold. Portugal two major high-speed rail can not be started; responsible for supporting infrastructure for Business, Innovation and Technology to cut 836 million pounds in the budget, bear the brunt of the various government departments.
"The only exception may be in Belgium, it is fortunate that the absence of a government to implement austerity." Meng Kesi current cabinet impasse in negotiations, Belgium ironic dilemma. In his eyes, European governments have been tightening dazzled - the beginning of the crisis, countries take a more Keynesian stimulus policies, but the Greek crisis, countries fall into a panic, have a fresh start.
The paradox is that Greece, a country like Ireland, by all means to save money to repay, investment in future growth of the economy has become bricks without straw. If the full relief of several large banks, Ireland's budget deficit this year to 32% rate may be higher. Just released the second quarter data show that the Irish economy back into contraction. See sluggish growth prospects, rating agencies and reduced the ratings of these countries, which means they will have to pay a higher interest debt.
If the 23 countries of the European Commission's proposal to reduce the financial case, "significant consequences on the economy," Progress of the European Foundation (FEPS) and the Danish labor movement in Economic Council (ECLM) obtained a report in June this year conclusion. The report predicts that: the EU GDP growth rate will slow recovery until 2015 to 2% level, while the unemployed population from 21.3 million in 2009 increased to 27.5 million in 2015.
"Austerity plan too much, too fast." Meng Kesi said. ETUC not opposed to debt reduction, but in such a short period of time to reduce debt. There need to borrow some more debt to maintain the employment support measures. He cited Germany, Austria and the Netherlands example, the government did not quickly stop the fiscal measures to support employment, the unemployment rate under control.
The German government called for this year, "Kurzarbeit" plans to shorten working hours to pay 60 million euros, the unemployment rate low in the past few years. A guarantee of employment, also supported the German people's spending power. Compared to Greece, Spain and other countries, Germany has the advantage, trade unions and the government, business relationships are more harmonious, more likely to solve the problem through the tripartite agreement, the crisis is also rarely seen in the strikes, demonstrations such radical measures. September 29 the "European day of action" in Germany, Austria, the Netherlands did not participate in the three countries, it is a proof.
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Article Added on Monday, March 19, 2012
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