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Posts Tagged ‘fiscal mismanagement’

However, the credit rating agency identifies some weaknesses in both economic policy and in institutions that were unable to avoid major fiscal and macroeconomic imbalances.

The danger of bankruptcy in the short to medium term the euro area remains low, according to the latest report from the credit rating agency Fitch.

However, the agency, the current crisis has highlighted some weaknesses in both economic policy and in institutions that were unable to avoid serious fiscal and macroeconomic imbalances.

Countries need to correct these imbalances if they are to a successful economy, and want to dispel any doubt about the sustainability of the eurozone.

According to the report, the political response to the crisis, including the European Stabilization Mechanism of 500,000 million euros, and the “accelerated reduction of its deficit” undertaken by some countries further away the danger of bankruptcy.

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