Finance ministers see black for 2010

The gloomy scenario is the official economic forecasts of the EU as far too optimistic to appear. Even in mid-January, Economic Affairs Commissioner Joaquín Almunia at improving the situation in the second half of 2009 is predicted. Meanwhile, however, many economists believe that the economic crisis is much more violent and longer than previously feared.

Europe’s economies had negative growth, historically low consumer and business confidence and credit dried up rivers marked, says the paper, the ministers on Tuesday to decide. “Negative spiral between the real economy and the financial markets exacerbate the situation.”

Nevertheless, the finance ministers want a timetable to reduce their national budget deficits set. “Most member countries will consolidate their efforts of 2010, those with financial flexibility will begin 2011,” as stated in the text. Only thus could be avoided, that markets highly indebted governments with even higher risk premium on their bonds abstrafen.

However, the EU is the flexibility of the Stability Pact in Crisis full advantage. Countries with high deficits should be “a long time to get corrective disclosure.” The shortfall will be a year in larger steps are removed. This provision is aimed at countries such as Ireland, in 2009 a deficit of nearly ten percent is likely.