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.

Other factors of deterrence would be important legal, financial and economic costs that would be such bankruptcy.

Fitch did not rule, however, that new episodes may arise extreme volatility of the market until the economic recovery and deficit reduction (and possibly also of the debt) are fully insured and this mechanism is operative stabilization.

The crisis of confidence in the long term viability of the euro reflects the agency said, the severity of the macroeconomic imbalances in the region, skepticism about the ability of the economies of the eurozone to carry out the necessary adjustments in the absence of flexibility monetary and exchange rates.

It also reflects doubts about the strength of political commitment in the area of the single currency, given the initial hesitation and resistance to help Greece.

The global financial crisis and its impact on the solvency of their own States are not fully understood without considering the excessive debt and leverage private sector highlighted just such a crisis.

When governments try to mitigate the financial and economic effects of reducing the debt you incurred by the private sector, increased its own debt.

The most serious deterioration in public finances are generally produced in countries with higher private sector borrowing, with the exception of Greece, whose crisis is mainly due to fiscal mismanagement and loss of credibility.