TNBiz (TNBiz)
Macroeconomics  |  September 05, 2012 14:25:11

Singer: The eurozone countries have not benefited from favorable economic conditions to consolidate budgets

PRAGUE (MEDIAFAX) - The governor of the Czech National Bank (CNB) Miroslav Singer in the past many eurozone member states erroneously did not take advantage of favorable economic conditions, when they had to consolidate their budgets. Singer said on Wednesday that during the 136th Žofín Forum with the theme "A decade of the euro - success or disappointment?"

Eurozone after its formation by Singer experienced successful period and encouraged trade not only within the monetary union, but also in its surroundings, which includes the Czech Republic. "At the same time easy access to cheap credit encouraged the rapid growth of private and public spending, which has resulted in current account deficits," said Singer.

For another problem CNB Governor considers such absence Institute, with which it would be possible exit from the eurozone. It was assumed that the government will take responsible and disciplined fiscal policy."As a result, it became clear that membership in the euro area has led to greater economic discipline in their own countries before entering the euro area, but after the inclusion of the union in the euro area has its member countries has not led to financial discipline," said Singer.

The basic problem of monetary union, however, according to the Governor Singer lack of political will to support the project. "The biggest project of the European Union with an ambition to significantly accelerate its growth to a level ensuring competitiveness after more than a decade of its existence did not grow. Conversely growing threat of collapse of the euro area, with potentially disastrous consequences for all around," he added Singer.

The euro area is the EU, which uses the common European currency, the euro. Its members are therefore states that joined the third stage of the European Monetary Union (EMU) and the euro on its territory schemes.The EU Member States are obliged to join the euro area. From this obligation are detached only the United Kingdom, Denmark and Sweden. The remaining seven states of the European Union, yet the euro as their currency are not introduced. These are Bulgaria, Czech Republic, Lithuania, Latvia, Hungary, Poland and Romania. According to a survey by the STEM agency for adoption of the euro in less than one fifth of Czechs.

(The report gives the agency Mediafax photo)

Jan Soukup,

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Singer: Země eurozóny nevyužily příznivých ekonomických podmínek ke konsolidaci rozpočtů

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