“You can fool some of the people all the time, and all of the people some of the time, but you can not fool all of the people all the time.”The European Monetary Union is pointed at your fingertips. Never the risk of failure was so great. The world is threatened with a monetary policy disaster.Now home to roost decades of fiscal misconduct. Many have lived beyond their means: Private and State. Who ever spends more than it earns, given a problem. Only the loans become more expensive, then he receives no more. Can only help increase revenue and lower expenditure. The policy has long supplanted this truism. Because they do not hurt the voters wanted, she chose the gentle way. Fiscal burdens were not born, they were financed by credit and over again. In the spring of 2010 tore the creditors finally lost patience. They no longer believe that all borrowers to return to the path of fiscal virtue.
€ is a veritable crisis of sovereign debt crisis. First came the countries of the periphery into the fiscal twilight. Now, however, the center is no longer safe from infection. The sinners are the debtors to the States. However, in some countries, private financial actors, the states have set credit rotten eggs in the nest. Everywhere government spending were the proceeds thereof. The holes were filled with financial loans. This went on for decades, so life on credit became chronic. The loans increased the state's debt mountain. The capital markets has not long disturbed, certainly not in the euro area. With the financial crisis exploded the national debt. But only the Greek fiscal Fukushima capital markets into a panic.
The output side of the euro countries shows at first glance little momentum. The government expenditure ratio moves since the introduction of the euro – little changed – to a high level. This goes for euro and non-euro countries. However, the expenditure ratios in the euro area were slightly higher. Only the outbreak of the financial crisis led to more movement. Now the government expenditure ratio increased significantly to values above 50% throughout the EU. This abdominal mastered the government expenditure on social protection. They run up to the financial crisis unspectacular, in the euro area but at a higher level. The ratio of other government spending in the euro area hardly moves, which rises in the other EU countries but steadily since 2000.
Because government spending grew faster than revenues, increased public debt. Drivers were in the euro area countries, expenditure on social protection in the non-euro countries other expenses. The members of the EMU into debt every year since the introduction of the euro on New. Also in the dazzling world of economic development phase 2004-2007 it funded a portion of their spending on credit. The non-members were up to the outbreak of the financial crisis a little more economical. No wonder that high in both groups of countries the debt in good times continued. With the financial crisis exploded the deficit and debt ratio for members and non-members.