Issue debt in Europe, called the European Financial or the European debt crisis is one of the most talked about. Will Europe to solve the debt problem, will be able to pay for them. Will survive, the euro will survive or not, and the entire European Union.
Imagine that a miracle occurred, and 60% or 80% of the European debt disappeared. It does not matter, where are the, well taken and evaporated. That after this change, what will happen? Investors suddenly at once believe in the European economy and begin to invest money in it? What could be the basis for such a change? If the old debts are gone, it does not mean that effectively create new ones. In Europe suddenly increase the rate of accumulation, and there will be a means for economic development? Alas, none of this will happen. State, as before, will spend more than collect taxes. Still grow debts of companies and households. Only the growth of new debt will be even more intense. And after 4-5 years, Europe will return to the same state that we are now seeing.
From all this follows the obvious conclusions. Europe's problem is not in debt as such. The impression that the debt crisis, it is an illusion. Debt is the consequence, not a cause. The reason lies in the production system, which generates these debts. Some financial instruments and financial regulation to solve this problem is not possible. This is not only a European problem. It is inherent in other countries of the world. The crisis in Europe is part of the global systemic crisis of the world economy. The crisis of transition to a new economic system, the new system of production, the new world order. This is a manifestation of the objective laws of development. To deal with them, as such, it's silly and pointless. This aspect of the fundamental problems have been considered earlier in the article "The global economic crisis, the causes and consequences. Quo vadis?" ( crisismir.com/analiticheskie-materialy/ekonomika/13-mirovoj-ekonomicheskij-krizis-prichiny-i-posledstviya-quo-vadis.html ). And there is no point in repeating here. Objective laws of development still pave their way. No matter how much was spent resources, the economy of the future that does not need to die. All this does not mean you have to sit down arms. If you act on the pre-emption strategy if to focus resources on the development of perspective in the future industries and production, we can significantly ease the transition to the future. Make it less painful.