Members of the Economic Crisis in Europe

Economic crisis in the European continent after the crisis that hit America. Market participants gave a negative sentiment toward the European continent. The crisis caused by the budget deficits in the European continent is growing and could almost be said to fail to pay. The crisis in the American continent to make the Euro zone economies affected.

Europe's crisis is a crisis caused by budget deficits in several countries in continental Europe. Starting from the Greek government deficit was followed by several other euro zone countries. Opinion growing that Greece is a cause of the economic crisis in. Opinion growing that Greece is a cause of the economic crisis in Europe. According detik.com European crisis that began with the Ireland According detik.co European crisis that began with the Ireland. Ireland developed country and has the government's budget is financed by debt. Budget which is owned by the Irish government as loan debt comes from loans "subprime mortgage", when the housing market experienced a saturation point it directly affected the Ireland. To cover the government debt, the bank cannot provide a new debt.

Greece is a problem for euro zone. According Nurlaila Lela Wati in "The Greek Crisis and Its Impact on Indonesia's Economy Saying" Greece is a country that has experienced several budget deficit. The budget deficit occurred in the time of King Dionisus Elder Elder who took office in 407-367 BC. The story of the failure of Greece to manage fencing continues until the Modern world. Greek 1843 budget deficit for the first time in the modern era. To cover the debt due to the budget deficit in 1843, Greece took steps to debt to Russia policy, France and the UK. This is not the first time Greece had a deficit budget in the modern era. When a massive economic depression, Greece is one of the countries hit by the impact of depression tersenut that occurred in 1860, 1894, 1932 and the latest that hit the economy in 2007. Greece joined to use the value of the Euro January 1, 2000.

The main purpose of determining the value of the euro currency is to bring together the economic potential of the countries sharing the existing European region. Expected with currency union could make the European economy could increase. Regional economic integration can be realized through cooperation among states and institutions form one of which is the European Union. The euro came into force on January 1, 1999 when the economic crisis in the Asia Pacific Hit and January 1, 2002 was introduced to the public banknotes and coins. Some countries that use the euro currency values can be seen in the table below.

Table 1

European Members that Use the Euro Currency

Country	Date	Country	Date
German	1 Januari 1999	Portugal	1 Januari 1999
Ireland	1 Januari 1999	Spain	1 Januari 1999
Netherlands	1 Januari 1999	Greece	1 Januari 2001
France	1 Januari 1999	Slovenia	1 Januari 2007
Luxembourg	1 Januari 1999	Cyprus	1 Januari 2008
Austria	1 Januari 1999	Malta	1 Januari 2008
Finland	1 Januari 1999	Slovakia	1 Januari 2009
Belgium	1 Januari 1999	Estonia	1 Januari 2011
Italy	1 Januari 1999

Source: Wikipedia

With the incorporation of the value of the currency can be expected to boost the economy of the member countries. The use of the euro may also provide some additional cost efficiencies loss arising from exchange rate differences, besides that the euro currency could be expected to be the standard international currency in the global investment.

Table 2

Development GDP growth, Inflation and Unemployment Prior to Using the European Currency (percent)

Country	Growth GDP				Inflation				Unemployment
	1995	1996	1997	1998	1995	1996	1997	1998	1995	1996	1997	1998
German	1.67	0.79	1.73	1.86	2.00	0.63	0.26	0.58	8.10	8.89	9.80	9.19
Ireland	9.63	9.45	10.91	7.80	3.03	1.03	4.37	7.23	12	11.69	10.19	7.69
Netherlands	3.11	3.40	4.27	3.92	2.06	1.29	2.63	1.91	7.19	6.40	5.5	4.40
France	3.96	3.56	6.20	5.03	1.23	1.46	0.91	1.03	11.80	12.39	12.60	12.10
Luxembourg	1.43	1.51	5.93	6.49	2.33	2.98	-1.87	-0.41	2.90	3.29	2.5	2.79
Austria	3.99	3.99	3.90	4.52	1.813	0.811	-0.22	0.32	3.70	4.09	4.19	4.19
Finland	3.96	3.56	6.20	5.03	4.52	-0.36	1.99	3.41	15.30	14.39	12.60	11.99
Belgium	2.38	1.42	3.73	1.92	1.22	0.37	0.87	1.87	12.5	13.80	12.69	14.30
Italy	2.88	1.13	1.86	1.44	4.92	4.79	2.56	2.66	11.69	11.89	12	12.10
Portugal	4.28	3.68	4.40	5.13	3.42	2.34	3.92	3.79	7.19	7.30	6.90	4.90
Spain	2.75	2.41	3.86	4.46	4.93	3.45	2.38	2.48	22.70	22	20.60	18.60

Sumber: World Bank

From the above table we can see how the growth of the countries in continental Europe prior to using the Euro. Of the three variables presented above (GDP growth, Inflation, and the total unemployment) of tahun1995 to 1998. Germany is one of the initiators of the Euro currency was formed it can be seen how the growth of GDP, stable inflation, and the total number of unemployed an average of 8%. German is one of the initiators of the Euro currency was formed it, we can see how the GDP growth, stable inflation, and the total number of unemployed an average of 8%.

Table 3

Development of GDP growth, inflation and unemployment before using the European currency(percent)

Country	Growth				Inflation				Unemployment
	1999	2000	2001	2002	1999	2000	2001	2002	1999	2000	2001	2002
German	1.87	3.05	1.51	0.01	0.19	-0.67	1.12	1.43	8.39	7.69	7.80	8.60
Ireland	9.91	9.29	4.79	5.87	4.78	7.01	6.48	5.01	5.80	4.30	3.70	4.19
Netherlands	4.68	3.94	1.92	0.07	1.77	4.12	5.09	3.82	3.59	2.70	2.09	2.59
France	3.29	3.67	1.83	0.92	0.17	1.57	2.01	2.21	12	10.19	8.60	8.69
Luxembourg	8.42	8.44	2.51	4.09	5.32	2.01	0.07	2.07	2.40	2.29	1.79	2.59
Austria	3.53	3.68	0.857	1.69	0.28	0.91	1.87	1.23	3.70	3.5	3.59	4
Finland	3.90	5.32	2.28	1.83	0.93	2.60	3.01	1.27	10.10	9.69	9.10	9
Belgium	3.53	3.66	0.80	1.35	0.31	1.97	2.05	2.00	8.60	6.59	6.19	7.5
Italy	1.45	3.65	1.86	0.45	1.79	1.94	2.87	3.20	11.69	10.80	9.60	9.19
Portugal	4.07	3.91	1.97	0.76	3.29	3.25	3.57	3.74	4.40	3.90	4	5
Spain	4.74	5.04	3.66	2.71	2.62	3.39	4.19	4.35	15.60	13.89	10.5	11.39

Source: World Bank

After using the euro currency can be expected growth in Europe has increased from before to use the value of the euro currency. The table above we can see how the economic indicators of the countries that joined the euro currency. In economic indicators use the value of the Euro is looking real results yet. Relationships difference between before and after using the euro currency have not looked at all.

Chart 1

Euro Currency Movements 2004-2011

Sumber: Google Finance

Table 4

Euro Exchange Rate to Other Currencies

Currency	1999	2000	2001	2002	2003	2004	2005
Pound S	0.65	0.60	0.62	0.62	0.69	0.67	0.68
US Dollar	1.06	0.92	0.89	0.94	1.13	1.24	1.24
Ind Rupiah	8,386	7,736	9,167	8,785	9,685	11,127	12,072
Japanese Yen	121.3	99.47	108.6	118.0	130.9	134.4	136.8
Singapura Dollar	1.80	1.59	1.60	1.69	1.97	2.10	2.07

Source: Eurostat

One of the main causes of the euro zone currency crisis is no set standard criteria that have been agreed upon. Based on criteria agreed upon is where government debt should not exceed 60% of GDP at the end of fiscal year, government fiscal deficit should not exceed the predetermined threshold of 3% of GDP.

Table 5

The Growth of Government Debt European Union (percent)

Country	2004	2005	2006	2007	2008	2009	2010	2011
German	-3.8	-3.3	-1.6	0.2	-0.1	-3.1	-4.1	-0.8
Ireland	1.4	1.7	2.9	0.1	-7.4	-13.9	-30.9	-13.4
Netherlands	-1.7	-0.3	0.5	0.2	0.5	-5.6	-5.1	-4.5
France	-3.6	-2.9	-2.3	-2.7	-3.3	-7.5	-7.1	-5.2
Luxembourg	-6.5	-7.9	-9.4	-5.1	-3.7	-4.6	-4.4	4.3
Austria	-4.4	-1.7	-1.5	-0.9	-0.9	-4.1	-4.5	-2.5
Finland	2.5	2.9	4.2	5.3	4.4	-2.5	-2.5	-0.6
Belgium	-0.1	-2.5	0.4	-0.1	-1.0	-5.5	-3.8	-3.7
Italy	-3.5	-4.4	-3.4	-1.6	-2.7	-5.4	-4.5	-3.9
Portugal	-4.0	-6.5	-4.6	-3.1	-3.6	-10.2	-9.8	-4.4
Spain	-0.1	1.3	2.4	1.9	-4.5	-11.2	-9.7	-9.4

Source: Eurostat

The table above illustrates how the government's financial deficit in the various member countries of the euro zone. Fiscal deficit has been instituted should not exceed 3% of GDP akantetapi decree was violated by several member states of the European Union that led to the financial crisis lasts. To cover the budget deficit caused by budget, member states continue to debt. The table above illustrates how the government's financial deficit in the various member countries of the euro zone.

Table 6

The Budget Deficit of the European Union Member Governments

Country	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
German	59.1	60.7	64.4	66.2	68.5	68	65.2	66.8	74.5	82.5	90.5
Ireland	35.2	32	30.7	29.5	27.3	24.6	25.1	44.5	64.9	92.2	106.4
Netherlands	50.7	50.5	52	52.4	51.8	47.4	45.3	58.5	60.8	63.1	65.5
France	56.9	58.8	62.9	64.9	66.4	63.7	64.2	68.2	79.2	82.3	86
Luxembourg	6.3	6.3	6.1	6.3	6.1	6.7	6.7	14.4	15.3	19.2	18.3
Austria	66.8	66.2	65.3	64.7	64.2	62.3	60.2	63.8	69.2	72	72.4
Finland	42.5	41.5	44.5	44.4	41.7	39.6	35.2	33.9	43.5	48.6	49
Belgium	106.5	103.4	98.4	94	92	88	84	89.2	95.7	95.5	97.8
Italy	108.2	105.1	103.9	103.4	105.7	106.3	103.3	106.1	116.4	119.2	120.7
Portugal	53.8	56.8	59.4	61.9	67.7	69.4	68.4	71.7	83.2	93.5	108.1
Spain	55.6	52.6	48.8	46.3	43.2	39.7	36.3	40.2	53.9	61.5	69.3

Source: Eurostat

The table above illustrates the growth of the debt of member countries that joined the EU in. Debt-added growth in member countries of the European UNI break the 2-digit or agreements that exist within the European Union. Luxembourg is a member of UNI European countries have added debt under a single-digit increase. This indicates that the European Union has financial problems. Judging from the growth of GDP, countries that joined the European Union has a very high growth prior to the economic crisis in the euro zone.

Tabel 7

European Economic Growth Forecast

Coutry	2004	2005	2006	2007	2008	2009	2010	2011	2012*	2013*	2014*
German	1.2	0.7	3.7	3.3	1.1	-5.1	4.2	3	0.8	0.8	2
Ireland	4.4	5.9	5.4	5.4	-2.1	-5.5	-0.8	1.4	0.4	1.1	2.2
Netherlands	2.2	2	3.4	3.9	1.8	-3.7	1.6	1	-0.3	0.3	1.4
France	2.5	1.8	2.5	2.3	-0.1	-3.1	1.7	1.7	0.2	0.4	1.2
Luxembourg	4.4	5.3	4.9	6.6	-0.7	-4.1	2.9	1.7	0.4	0.7	1.5
Austria	2.6	2.4	3.7	3.7	1.4	-3.8	2.1	2.7	0.8	0.9	2.1
Finland	4.1	2.9	4.4	5.3	0.3	-8.5	3.3	2.7	0.1	0.8	1.3
Belgium	3.3	1.8	2.7	2.9	1	-2.8	2.4	1.8	-0.2	0.7	1.6
Italy	1.7	0.9	2.2	1.7	-1.2	-5.5	1.8	0.4	-2.3	-0.5	0.8
Portugal	1.6	0.8	1.4	2.4	0	-2.9	1.9	-1.6	-3	-1	0.8
Spain	3.3	3.6	4.1	3.5	0.9	-3.7	-0.3	0.4	-1.4	-1.4	0.8

Source: Eurostat

European member states would be expected to experience relatively little growth in 2014. Luxembourg which has a budget deficit and debt are relatively small growth predicted to be relatively small growth of below one per cent. This is because the member states of the European Union have an impact on defaulted debt.