Record Euro Zone Debt Crisis Make Messier

Keynesian solution to the crisis in Europe is government spending to economic growth round. Restoring growth would generate more tax revenue, think, so fiscal pump-priming will eventually pay for itself. But Keynesian debt arrangement makes it difficult to implement. Indebted countries can not spend more for fear of losing the trust of investors.Debt, in short, clear the "wiggle state fiscal room.That 'why EU report now rising government debt in the euro zone single currency hard. Association announced that the government debt to GDP ratio increased from 85.3 percent at end-2010 to 87.2 percent at the end of 2011. According to Bloomberg News, the ratio of 2011 is the highest since the euro was introduced in 1999.What 's double scary if not only recognized the problem of children who see Europe as Greek government debt rose as part of the gross domestic product. Even in the Netherlands, one of the four remaining AAA-rated countries in the euro zone, increasing debt to GDP ratio from 62.9-percent to 65.2 percent, according to the Dutch fans Union.The strong Europe Germany trip saving until now, but they are getting weak in the knees. RTL television reported that Dutch Prime Minister Mark Rutte resigned after losing the support of Geert Wilders of the Freedom Party in the coalition, following a dispute on an austerity package. "There is a danger that we will see a move to a more radical, less European-friendly policies in the Netherlands," Elisabeth Afseth, an analyst at Investec Bank in London, told Bloomberg quote News.Here's an announcement from the European Union to all Relevant numbers: At the end of 2011, the lowest ratio of government debt to GDP was recorded in Estonia (6.0%), Bulgaria (16.3%), Luxembourg (18.2%), Romania (33.3%), Sweden (38.4%), Lithuania (38.5%), Czech Republic (41.2%), Latvia (42.6%), Slovakia (43.3%) and Denmark (46.5%). Fourteen Member States with government debt ratios higher than 60% of GDP in 2011: Greece (165.3%), Italy (120.1%), Ireland (108.2%), Portugal (107.8%) , Belgium (98.0%), France (85.8%), English (85.7%), Germany (81.2%), Hungary (80.6%), Austria (72.2%), Malta (72.0%), Cyprus (71.6%), Spain (68.5%) and the Netherlands (65.2%).