EU acts as budget deficits bulge

Jared Hance

02/19/09

8:08pm

 

The European Commision has warned several countries in Europe that they have breached part of their responsibility to keep their deficits above 3% of GDP.  While the global financial downturn has much to do with this, it's especially interesting to note that such prominent countries as France, Spain, Ireland, and Greece are being so affected by a crisis started here in America. Now that the EUC has stepped in, they must begin working with these countries to assist in lowering their deficit collectively. They have stated however that given the status of the economy around the world, they would be much more forgiving and willing to bend for these countries, rather than treat then with the full force of penalties, outlined in the EUC’s growth and stability pack.

            While I can see the reasons for the implementation as a plan such as this at an earlier point in time, given the potential global recession impacting everyone, I find it somewhat wasteful to attempt and regulate minor dips in countries GDP. Yes, it is important to do help countries such as these, but at the same time should such funding and time go towards the totality of Europe’s recession, it would in turn help these specific countries as well. But in the end, what does it take to cure a global crisis? A global answer to these problems. And such problems are tackled first by countries and coalitions.