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What really caused the eurozone crisis?

World leaders probably spent more time worrying about the eurozone crisis than anything else in 2011.

And that was in the year that featured the Arab Spring, the Japanese tsunami and the death of Osama Bin Laden. What's more, 2012 looks set to be not much different. But as eurozone governments hammer out new rules to limit their borrowing, are they missing the point of the crisis? 

   * The eurozone has agreed a new "fiscal compact"
   * Eurozone leaders have agreed to a tough set of rules - insisted on by Germany - that will limit their governments' "structural" borrowing (that is, excluding any extra borrowing due to a recession) to just 0.5% of their economies' output each year. It will also limit their total borrowing to 3%. These rules are supposed to stop them accumulating too much debt, and make sure there won't be another financial crisis.
   * But didn't they already agree to this back in the '90s?
   * Hang on a minute. They agreed to exactly the same 3% borrowing limit back in 1997, when the euro was being set up. The "stability and growth pact" was insisted on by German finance minister Theo Waigel (centre of image). What happened?
   * So who kept to the rules?
   * Italy was the worst offender. It regularly broke the 3% annual borrowing limit. But actually Germany - along with Italy - was the first big country to break the 3% rule. After that, France followed. Of the big economies, only Spain kept its nose clean until the 2008 financial crisis; the Madrid government stayed within the 3% limit every year from the euro's creation in 1999 until 2007. Not only that - of the four, Spain's government also has the smallest debts relative to the size of its economy. Greece, by the way, is in a class of its own. It never stuck to the 3% target, but manipulated its borrowing statistics to look good, which allowed it to get into the euro in the first place. Its waywardness was uncovered two years ago.
   * 3/9 Italy
     Worst offender
   * 5/9 Germany
     First to break rules
   * 6/9 France
     Offender
   * 9/9 Spain
     Top of the Class
   * But the markets have other ideas
   * So surely Germany, France and Italy should be in trouble with all that reckless borrowing, while Spain should be reaping the rewards of its virtue? Well, no. Actually Germany is the "safe haven" - markets have been willing to lend to it at historically low interest rates since the crisis began. Spain on the other hand is seen by markets as almost as risky as Italy. So what gives?
   * So what really caused the crisis?
   * There was a big build-up of debts in Spain and Italy before 2008, but it had nothing to do with governments. Instead it was the private sector - companies and mortgage borrowers - who were taking out loans. Interest rates had fallen to unprecedented lows in southern European countries when they joined the euro. And that encouraged a debt-fuelled boom.
   * Good news for Germany...
   * All that debt helped finance more and more imports by Spain, Italy and even France. Meanwhile, Germany became an export power-house after the eurozone was set up in 1999, selling far more to the rest of the world (including southern Europeans) than it was buying as imports. That meant Germany was earning a lot of surplus cash on its exports. And guess what - most of that cash ended up being lent to southern Europe.
   * ...bad news for southern Europe
   * But debts are only part of the problem in Italy and Spain. During the boom years, wages rose and rose in the south (and in France). But German unions agreed to hold their wages steady. So Italian and Spanish workers now face a huge competitive price disadvantage. Indeed, this loss of competitiveness is the main reason why southern Europeans have been finding it so much harder to export than Germany.
   * ...and a nasty dilemma
   * So to recap, government borrowing - which has ballooned since the 2008 global financial crisis - had very little to do with creating the current eurozone crisis in the first place, especially in Spain (Greece's government is the big exception here). So even if governments don't break the borrowing rules this time, that won't necessarily stop a similar crisis from happening all over again.

     Spain and Italy are now facing nasty recessions, because no-one wants to spend. Companies and mortgage borrowers are too busy repaying their debts to spend more. Exports are uncompetitive. And now governments - whose borrowing has exploded since the 2008 financial crisis savaged their economies - have agreed to drastically cut their spending back as well. But...
   * Cut spending...
   * ...and you are pretty sure to deepen the recession. That probably means even more unemployment (already over 20% in Spain), which may push wages down to more competitive levels - though history suggests this is very hard to do. Even so, lower wages will just make people's debts even harder to repay, meaning they are likely to cut their own spending even more, or stop repaying their debts. And lower wages may not even lead to a quick rise in exports, if all of your European export markets are in recession too. In any case, you can probably expect more strikes and protests, and more nervousness in financial markets about whether you really will stay in the euro.
   * Don't cut spending...
   * ...and you risk a financial collapse. The amount you borrow each year has exploded since 2008 due to economic stagnation and high unemployment. But your economy looks to be chronically uncompetitive within the euro. So markets are liable to lose confidence in you - they may fear your economy is simply too weak to support your ballooning debtload. Meanwhile, other European governments may not have enough money to bail you out, and the European Central Bank says its mandate doesn't allow it to. And if they won't lend to you, why would anyone else?

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this is a concert band will only in mainland China, the The Killers concert use 16 bass sound box is difficult to imagine, for this arrangement, performance on the progress of course be obvious to people, even though Zhao Peng has superhuman powers scene.

India's defense minister Mu Kejie said in September 3rd

Press Trust of India reported, Mu Kejie said: "the French have pledged to civilian nuclear energy cooperation,abercrombie uk, development,abercrombie.India wants to continue to develop cooperation process,ralph lauren."At present, the nuclear cooperation between India and the United States proposal has not obtained the United States congress.

in new network on 4 September, India's defense minister Mu Kejie said in September 3rd, India and France will hold talks in 4 days on national defense,hollister deutschland, civilian nuclear cooperation issues will be made remarkable progress in the talks.He also said, India hopes to strengthen the strategic partnership with france.

Mu Kejie emphasizes at the same time, the United States embargo should cancel the fissile material to India as soon as possible,abercrombie, he argues that the lack of these materials will affect the construction of the India nuclear power reactor,abercrombie.He said, India and the United States of America is to start procedures, and is waiting for the final &quot,hollister online shop;eliminate embargo&quot,hollister deutschland;.Mu Kejie said: &quot,hollister;at this point we obtain some French,乙肝, further progress in the talks,louboutin pas cher."




last Sunday,乙肝治疗, other researchers Mu Kejie and India's defense ministry is composed of senior defense delegation visited france.Mu Kejie meets with President Chirac of France and the French defense minister Alio during a visit in mali.



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It noted that China's economy will hopefully maintain steady and relatively fast growth.

"The momentum of sustained growth remains strong and positive factors that can drive domestic demand up are increasing," it said.

However, the report stressed that the sluggish recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.

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See your wealth Zhi to there is Gao much

You suddenly want to go to the seaside relax by taking stroll coachoutletsotreonlinehxp.webs.com.Arrived the seaside, you naturally took a walk on the sea beach and trampled on the soft fine sand, do you feel that you meets to arrive what things?

A.Take the sea urchin B of sting.Asteroid starfish

C.Curving octopus

D.A small sea turtle

Choose AN of you your wealth company's level isn't high, need to strengthen the study of investment and finance.

Choose B of you you are a finance mangaing superior.

Choose C of you your wealth company's level is general, can attain within our means in the daily life.But still need to open widely own investment outlet.

Choose D of you you are just a born rich man, become rich a matter of time.

Bell bell bell....Time arrives!Each classmate that does please let go of the pen in the hand and in order come out a testing of wealth field.Want future wealth, or work hard effort, or the Xi smile Nu to scold, or can also Coach Outlet....Wash to sleep.

Tomorrow, the sun will also as usual rise.

(The Kang baby excerpts from 《investment and finance mangaing 》 )Float a life time in,



Have numerous fascinating.

But we only have an one way boat ticket,

Can not adjust a head to do it again in the brief life sail on the way.

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In 1972, New York.With exclusively is Huo China is virtuous·Rest Si to write the biography cheats for 《》magazine and the wheat space Lao& middot;Total William& middot of USD 1,750,000 remuneration in the rare Er publisher;Ma Lao is walking on air.He just once cheated the police's survey by the Ling tooth Li Chi, wanting ～only 14 years had never appeared already of Huo China is virtuous·Rest Si don't stand out by himself/herself, who can not also prove that he is a liar.

But he didn't thought of, a villa insides of several Bahama Islands out of 1000 kilometers, 7 well-known reporters come together together and nervously stare at 1 in the room to shoot to be like a head.This shoots be like a back sit that mysterious person Huo China is virtuous·Rest Si."All of you are the acquaintances who once covered me, can also listen to my voice?"The loudspeaker spread deep and low voice.The reporters discuss in succession, at distinguish this voice exactly is who Coach Outlet Store Online.When this voice spoke everybody to at the beginning cover him after some small details, owners' all affirming this voice is that Huo China is virtuous·Rest Si."That good, you listen to:I have never seen Mr. Ma Lao.This is a guy for telling a lie, Related articles:

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more than 700 at home and abroad enterprises appeared

in Chengdu in November twenty-nine report (reporter Yang Jie) two 00 six China Western Culture Expo this morning in Chengdu New International Convention and Exhibition Center Grand opening,乙肝.The most incisive display the essence of Chinese Western culture "cultural feast", is expected to attract millions of people to taste.Host


for a period of four days of the fair in order to "resources and creativity and cooperation&quot,polo ralph lauren; as the theme, the main venue of the nearly sixty thousand square meters, for visitors free launch western culture industry exhibition,hollister, cultural exhibition hall, Sichuan Chengdu Culture Industry Exhibition Hall five, covering culture and art, performance stage, animation,abercrombie uk, cultural heritage, non-material cultural heritage, arts education, cultural tourism, publishing, arts and crafts, folk culture and so on.



West China Cultural Industries Fair by the China Ministry of culture, the State Administration of radio, press and publication administration combined with Western twelve provinces, autonomous regions and one of the provincial government,abercrombie uk, held annually.

it is understood, the &quot,abercrombie;Western cultural" in addition to the twelve western provinces (city, autonomous region) of all exhibitors, more than 700 at home and abroad enterprises appeared, including the Shanghai media group, Microsoft (China) and other world famous enterprises.During the Expo, twelve western provinces (area, city) will launch two hundred and eighty-nine projects of cultural industries, and strive to complete the 10 billion yuan project contract.Eighteen countries envoys from the United States, Japan, and Canada, Korea and other sixteen countries and regions of the businessmen to participate, the United States of America,乙肝治疗, Asia, Disney exploration Sony movie and entertainment company and other well-known enterprises will seek business opportunities in the expo.




at the same time, the twenty branch field set up in the famous scenic spot of Sichuan cities, and Sanxingdui, Jiuzhaigou, Mount Emei,abercrombie france, has been at the beginning of the month after the curtain, widely held special film week, theatrical season and food culture street, temple,hollister deutschland, rich and colorful of the mass cultural and recreational activities, so that the "culture feast&quot,abercrombie uk; in urban and rural, millions of people may share the rich cultural achievements of western culture, feel the charm of.

at nine forty-five this morning, vice chairman of the NPC Standing Committee Xu Jialu announced the opening of the general assembly.The CPC Sichuan provincial Party Secretary, the provincial people's Congress Standing Committee Zhang Xuezhong, governor Zhang Zhongwei and relevant ministries, the other western country eleven provinces and city officials,abercrombie, guests from home and abroad enterprises representatives attended the opening ceremony,louboutin pas cher.

The new agency


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It noted that China's economy will hopefully maintain steady and relatively fast growth.

"The momentum of sustained growth remains strong and positive factors that can drive domestic demand up are increasing," it said.

However, the report stressed that the sluggish recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.

Xie Chuntao

in new network on 12 October, the sixteen session of the six plenary session of the Central Committee considered and adopted the "decision of the CPC Central Committee on some major issues of building a socialist harmonious society".Hongkong Wen Wei Po reported from Beijing that, within the Communist Party of China well-known theory expert analysis says, six of the installation of the "release valve&quot,hollister deutschland; and "shock absorber" for China's further development, China will usher in a new round of reform and innovation.Professor, deputy director of the history department, famous expert, Xie Chuntao



points out that the six plenary session of the Central Party school,abercrombie uk, the communique proposed to "face the contradiction, resolve contradictions, maximize harmonious factors, minimize the factors of disharmony, promoting social harmony&quot,hollister online shop;.This fully shows that, after nearly thirty years of rapid development, the CCP leadership clearly recognize that different members of society income gap between the harm to social stability, tries to focus on the development of social undertakings, to promote social fairness and justice, building a harmonious culture, perfect social management, enhance social creativity and other initiatives, the construction of a more harmonious society.A famous expert Professor Ye Duchu






points out that the main significance of Central Party school, the six plenary session of the Central Committee is the concept of a harmonious society will be raised to the level of institutionalization,hollister.Bulletin of the future answer of how to lead the construction of a harmonious society, the communique mentioned &quot,乙肝治疗;grasp the direction, policy, integration of forces, create an environment" these 16 words, is the future of the Communist Party of China in the field of social development policy framework.The ruling party insists on taking economic construction as the center, will highlight the social construction that position,abercrombie uk, through the integration of all sectors of society, social problems.

party analysts also think, the six plenary session,louboutin pas cher, the CPC will endeavor to build on rural,polo ralph lauren, employment,hollister, education,乙肝, health, environmental protection and so on the livelihood of the concrete system and mechanism, to minimize the human factors in the process of ruling may bring negative effect,ralph lauren.

, Professor Xie Chuntao frankly, if the establishment of the socialist market economy, is the main power and efficiency to solve the problem of the development of words, then, constructs the socialism harmonious society is in rapid development at the same time, pay more attention to solve social balance and stability problems,hollister deutschland.

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It noted that China's economy will hopefully maintain steady and relatively fast growth.

"The momentum of sustained growth remains strong and positive factors that can drive domestic demand up are increasing," it said.

However, the report stressed that the sluggish recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.

Jiang Yu said

in Beijing on fourteen November, (reporter Li Jing) Chinese Foreign Ministry spokeswoman Jiang Yu fourteen, said at a regular press conference, the Chinese government attaches great importance to the issue of climate change, and has made important contribution to the mitigation of climate change,hollister.


Jiang Yu said, China has joined the "United Nations Framework Convention on climate change" and the &quot,abercrombie;Kyoto Protocol" more than 50 items relates to the field of environmental protection of international treaties.In recent years, the Chinese government has been strictly in accordance with the provisions of the Convention and the protocol to perform their commitments,polo ralph lauren, and formulated a series of policies on climate change and measures,乙肝, vigorously promote energy efficiency, energy conservation, development of renewable energy, afforestation,abercrombie uk, effectively reduce greenhouse gas emissions,ralph lauren.

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Jiang Yu also calls not ratify the protocol developed countries as soon as possible to the ratification of the protocol, the international community to address climate change efforts can be put into concrete action.

two billion six years of United Nations climate change conference opening six in Kenya's capital Nairobi,乙肝治疗, the main theme of the conference is &quot,hollister online shop;post-Kyoto" problem, namely two, one or two years later how to further reduce greenhouse gas emissions.



"we to achieve the objectives of the Convention has made an important contribution, this also is recognized by the international society."Jiang Yu said, China &quot,abercrombie uk;eleven five&quot,abercrombie; plan proposed to reduce in the next five years,abercrombie, the unit GDP energy consumption twenty percent,hollister deutschland, the total discharge of major pollutants reduced by ten percent, forest coverage rate increased to twenty percent of the target.She believes that, these measures will mitigate climate change and make more positive contribution.

asked: China is about the organization as one of the countries is not conducive to the mitigation of climate change, the United Nations Climate Change Conference, being held in Nairobi may discuss, I do not know what is China's comment?



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It noted that China's economy will hopefully maintain steady and relatively fast growth.

"The momentum of sustained growth remains strong and positive factors that can drive domestic demand up are increasing," it said.

However, the report stressed that the sluggish recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.

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Mini electronic calendar more often, we do not need to know so much, but simply want to know is What day is it today If you are sitting in front of the computer, installed on your computer and XP systems, you want to move the mouse to display the lower right corner of the clock, the one you saw today is a certain period of one day of the week it? If you think you only need pamphlets setting, three steps to get, once and for all, you take a look at, in this setting, in order to know that today is the day of the week and not have to double-click the bottom right corner of the time display to open the clock Program cars? Simply hover the mouse above the clock, you can not see it?

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Sichuan provincial highway network running normally

now, front-line disaster relief road transportation command has mobilized emergency passenger car 1973, running 2907 trips to transport personnel, about 91000 people,ralph lauren, accumulative total mobilization of emergency freight car 5120, running 10625 trips, the delivery of goods about 63700 tons; by adopting the FCL transportation and unstuffing transportation, Chengdu City has transported 200 a container arrived in the disaster areas, housing more than 28000 square meters has been built.




in new network on 6 June,abercrombie uk, according to the latest news, the Ministry of transport at present, Sichuan provincial highway network running normally, vehicles can carry relief supplies and wounded from multiple channels to hard-hit areas of Wenchuan, Maoxian, Beichuan etc,abercrombie..According to incomplete statistics, as of the morning of June 5th, the transport sector allocation of emergency capacity has a total of 571000 tents, 61000 prefabricated houses and timely delivery to each county area temporary shelters.

　　根据交通运输部地震灾区前方指挥部指示精神，全国各省对口支援四川灾区的活动板房将陆续进入四川,abercrombie，四川交通运管部门记进一步调配全国交通进入灾区应急运力、采取多项措施做好帐篷、活动板房的应急运输工作，保障灾区人民及时有房住。One is the organization of the freight company held a mobilization meeting on the container transportation problem of housing activity,hollister, the transportation enterprises to actively participate in the activities of the board transportation, provide enough container capacity.All two are strengthened and targeted aid Province, actively help link allocation adequate,abercrombie uk, appropriate capacity,abercrombie france.Three is for the activities of the board of large volume, large size,hollister deutschland, transportation difficult problem, Sichuan province traffic hall transportation authority with the provincial road transport characteristics and the situation of the vehicle, the feasible scheme to transport enterprises to develop road transportation of relief activities of the board, the selection of appropriate models, enhance capacity reserve, scientific organization formation, and arrange the transportation vehicle repair team,polo ralph lauren, ensure that the activities of the board in a timely manner, the safe arrival of the front-line areas.The four is to require the transportation enterprise must, should pay attention to transport emergency problem solving way,hollister online shop, care involved in the transport of the driver's life, eat,乙肝治疗, drink, and solve the problems they heatstroke, do our best to provide considerate service for their driver, stable emotion, ensure that they can devote to housing and transportation work go to the,abercrombie.

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It noted that China's economy will hopefully maintain steady and relatively fast growth.

"The momentum of sustained growth remains strong and positive factors that can drive domestic demand up are increasing," it said.

However, the report stressed that the sluggish recovery of the global economy, the negative effects of monetary loosening abroad and the unbalanced economic structure domestically still present a complicated environment for China.

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responsible person on the phone to new network reporter described the scene said, the bus turned into 40-50 metres down the mountain, the body was badly damaged,hollister, the seats are deformed,abercrombie deutschland, cliff points scattered around the bus accessories.

Hunan province Yongzhou city Lingling District Fire Brigade rescue is responsible to the new network newest divulge,michael kors, occurred in 18 at about 17 PM of Yongzhou with 48 people on the bus off cliff accident has killed 2 students,abercrombie france.




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Lingling district fire chief introduces,hollister pas cher, they rushed to the scene when the bus inside the cliff is also left over the final 2 students, they tried to rescue, doctor said that 2 students had died.

, the head is also disclosed,michael kors outlet, there is one person has not yet found, are being sought,hollsiter, as the number of casualties,casque dr dre, still further statistics.(reporter Liu Zhu Li Junjie)

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