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European Commission

February 25th, 2011

According to him, now from the imf predicted losses of banks are already reflected in its financial statements losses of 80 billion dollars Also, currently disclosed write-off of ubs and Deutsche Bank. However, European governments, unlike the U.S., a very balanced approach to the question of assistance to individual companies to fight crises. For example, recently the German government announced that it is not inclined to help the carmaker Opel, which was faced with a catastrophic drop in demand for its products, noting that there should not pay for mistakes and failures of companies issued for the consequences of the crisis. In Europe, easily implemented, even the traditional fiscal measures to stimulate the economy. The European region had every opportunity to prevent a negative development events: according to statistics from the European Commission, the overall eurozone budget deficit last year amounted to only 0.6% of gdp – that is, compared to the U.S.

and the uk economy of the region seems to be quite healthy. November 26 The Commission released a plan a coordinated fiscal stimulus of the eu economy 200 billion euros (258 billion U.S. dollars). It provides a number of measures – temporary reduction in jobs and taxes, more generous state support for the unemployed and low paid workers, etc., but such measures are at best they will provide short-term acceleration. Some resistance, which show the eu authorities when it comes to the inclusion pump pumping the economy by fiscal means, may seem perfectly reasonable. The experience of the last three decades has shown that the best management tool in terms of economic cycles is a monetary policy.

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