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The following article was published in our article directory on November 23, 2010.
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Article Category: Business
Author Name: xia zihui
Greek government announced on November 18 Budget 2011, and reaffirmed the commitment to deficit reduction. Greek Ministry of Finance had said it expects the country's budget deficit in 2011 than in 2010 by 50 billion euros, but significantly higher than the draft budget announced in October for 22 billion euros in deficit reduction targets. Since the IMF, the European Commission and European Central Bank's delegation will assess the Budget of Greece in order to verify whether the country on track to achieve its deficit reduction targets.
The Budget also expects the country's GDP in 2010 will drop substantially by 4.2% in 2011 to further shrink 3%, 2.6% decline than previously expected. In addition, the Greek government expects the average unemployment rate in the country in 2011 from 12.1% in 2010 rose to 14.6%.
As of the end of 2009, the Greek debt to GDP ratio value of 124.9%, ranking first in the EU member states; deficit-GDP ratio value of 13.6%, ranking second in EU member states.
Spain
November 18, Spain a successful auction of € 3.6 billion over the long-term and long-term bonds, but the country has more than ten-year bond yields 4.6%, the highest the highest level since May.
Spain GDP accounted for 12% of GDP, the euro area, Greece, Portugal and Ireland, twice the sum of the three economies. Institutions are expected only in 2011, Spain would need to finance 65 billion euros; to 2013, the total of 351 billion euros of funds. Analysts worry that the debt crisis of the Spanish, severity and Greece, Ireland is quite different.
Spanish economy suffered heavy losses in the financial crisis in 2010, the first three quarters, the economy only 0.1%, 0.2% and 0.2% of the weak growth. Currently, the Spanish unemployment rate is as high as 20%.
As of the end of 2009, the Spanish than the value of debt and 66.3% of GDP, the deficit-GDP ratio value of 11.2%, respectively, eleventh highest in the EU member states and third.
Portugal
Ireland became a formal application for assistance to the Portuguese market, the next focus of concern, President da Silva of Portugal published on November 22 said the situation is completely different from the Irish, without the EU or IMF assistance programs.
Silva explained that Portugal and Ireland the situation is entirely different, the country's banking system is no crisis, nor face the real estate bubble, the size of government debt is still within the scope of the European average.
As of the end of 2009, the Portuguese than the value of debt and 84.6% of GDP, the deficit-GDP ratio value of 9.4%, both among the EU Member States fourth.
Italy
Italian National Bureau of Statistics released on November 12 initial report shows third quarter of 2010, Italian GDP growth of 0.2% qoq, an increase of only half of market expectations. Data show that Italy's export-oriented economic recovery is losing momentum. Compared with the same period in 2009, Italy's third-quarter economic growth of 1%, the country's second-quarter GDP growth of 0.5% qoq.
Bank of Italy Governor Mario Draghi said Italy's smaller enterprises, the impact of the global economic downturn is far greater than its EU partners.
As of the end of 2009, the Italian debt to GDP ratio value of 116.7%, the deficit-GDP ratio value of 5.3%, respectively, the second highest in the EU Member States and the tenth one.
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