European Union and the International Monetary Fund jointly announced 850 billion euros aid the Irish plan does not ease market tensions, investors are still worried about Europe, landlocked country debt crisis spread to Europe. European Commission report released part of the 29th confirmed market fears. EU expects the next two years, Member States will show a recovery situation is not balanced, the United Kingdom, Germany, France and Italy will boost economic development in the EU, but Greece, Ireland, Portugal and Spain are to varying degrees of economic contraction recovery woeful.

The same day as the European debt crisis “disastrous” for Ireland, Portugal and Spain sovereign credit default swaps were a record high, used to track changes in the euro area member states national debt CDS index iTraxx SovX Western Europe to expand 12 basis points, up the euro area the highest level.

Assistance to economic contraction match for Cialis

The European Commission released the same day, “Autumn Economic Outlook Report” that the member governments to implement fiscal austerity could lead to economic weakness in the euro area in 2011. Debt crisis by the EU, the euro area sovereign bond markets may further into turmoil, which is expected in the region, there is downside risk to economic growth, sovereign risk premium increase can not be ruled out, bank loans has declined with the economic outlook worsened the possibility of a vicious cycle between , but this is unlikely.

The EU said that the austerity measures of economic activity under pressure, is expected to gross domestic product of Greece in 2010 will shrink by 4.2%, fell more than expected in 2011 will further shrink 3%, this will be the country’s economic row three years of recession until the end of 2011, the Greek economy was expected to recover.

Despite the accepted international assistance, but the Greek banking sector did not improve credit conditions. Greek central bank said in a statement 29, October Greek private banking sector credit growth further from September’s 1.2% to 1%, enterprises, individuals and nonprofit institutions, credit volume has decreased. Greek central bank said the economic downturn, weak domestic demand for loans, banks become more cautious when extending credit, credit growth continued to weaken. In addition, the current outflow of the high level of banking deposits, heavy reliance on ECB funds.

Receiving assistance for the second member of the Irish, the EU expects the GDP to fall 0.2% in Ireland in 2011 and 2012 will return to moderate growth, GDP growth of 0.9%, respectively, and a slight 1.9%. EU also warned that the Irish economic outlook is still facing great risk.

Spain and Portugal weak recovery

Well-known economist, the “Dr. Doom,” said New York University business school professor 29 warnings, Portugal and Spain took over from Ireland to apply for assistance, “the baton” the possibility of growing higher. Roubini said: “Portugal is approaching a critical juncture, to take precautionary measures in advance to apply for assistance is a good idea”; alarmingly high rate of unemployment in Spain, the real estate market has collapsed, the banking sector needs to be reorganized, and the Government did not sufficient funds to cover relief costs.

Although Portugal and Spain still insisted that their need for assistance, but its really bleak economic outlook, the European Union is expected in 2011, is still hard to embark on their economic recovery on track.

The European Commission is expected, although the Portuguese economy in 2010 is expected to achieve 1.3% growth; but because of financial constraints, the country’s 2011 GDP will shrink by 1%, rather than previously expected growth of 0.5%; the Portuguese economy in 2012 is expected to achieve growth of 0.8% .

The EU also expects fiscal tightening will help the Portuguese GDP, the ratio of budget deficit fell to 7.3% this year, and was further reduced to 4.9% in 2011, but still difficult to achieve the government target of 4.6%. The EU also warned that, due to weak economic growth in 2012, Portugal, the deficit ratio will again rebound, rising to 5.1% of GDP.

29, the central bank of Portugal’s “Financial Stability Report,” the European Commission is expected to agree. The bank expects the Portuguese economy in 2011 will fall into recession. Portuguese central bank noted that fiscal consolidation is particularly important for the Portuguese banking sector, otherwise the financial system of the country may face “intolerable risk.” The report also said that the current, the Portuguese banks have been excluded from the inter-bank financing market, heavily dependent on the ECB liquidity support provided.

Than Portugal, Spain’s economic outlook slightly better limited. EU 2010 growth forecasts for Spain declined 0.4% to the 0.2% decline, but at the same time its 2011 growth forecast from 1% to 0.7%. EU said that despite experiencing severe 2008 and 2009 recession, the Spanish economy began to stabilize in 2010, but the strong recovery in the economy has not entered the track.

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