Furthermore, if the sovereign debt problems in Europe worsen and this leads to disturbances in global financial markets, Japan will inevitably be significantly affected.
With concerns intensifying over the European debt problem, market views are hardening regarding excessive public debts, as these could disrupt the global economy.
As for the European debt problem, since the Greek crisis that began in May 2010, for more than two years a process has continued in which governments respond only intermittently to pressure from the markets.
The effects of the sovereign debt problemsin Europe The sovereign debt problemsin Europe surfaced in October 2009 when, following a change of government, the new administration in Greece revealed that the country's fiscal deficits were larger than previously announced.
昨年末にかけて深刻さを増した欧州債務問題次に、焦点となっている欧州債務問題についてお話しします。
The European debt problem that became increasingly serious toward the end of last year Let me turn to the European debt problem, which has been the focal question now.
しかし欧州債務問題の影響を始め不確実性は大きいただし、以上の見通しには様々な不確実性が存在します。
However, there are high uncertainties, including the effects of the European debt problem The outlook is associated with various uncertainties.
The most important assumption made in the latest outlook rules out the possibility that an extreme intensification of the European debt problem would trigger a significant downturn in the global economy through the turmoil in global financial markets.
On the back of the European debt problem, there is also an aspect of deterioration in fiscal conditions due to the burst of a global credit bubble, which is common to other advanced countries.
Besides, as for the European debt problem, I have said that, while the possibility might be extremely low, we also need to prepare for a rainy day when financial markets become chaotic.
Meanwhile, risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects for the European debt problem, and the pace of recovery in the U.S. economy.
Nevertheless, the European debt problem itself has not been resolved, and concern over deleveraging-- whereby financial institutions reduce lending and adversely affect economic activity-- has yet to be dispelled.
The international community that will be affected substantially by the European debt problem has been increasingly keeping a close eye, and Japan and many other countries have been requesting a swift solution of the problem at international conferences and other opportunities.
First, looking at overseas economies, due to the effects of the European debt problem, business sentiment has become cautious in many countries and regions, mainly in the manufacturing sector, and the economies have moved somewhat deeper into a deceleration phase.
However, international markets' views on the European debt problem remain stable and the European Central Bank implemented a series of additional monetary easing measures in June and September.
More recently, the trend of risk aversion on the back of concern over a slowdown in the global economy and the European debt problem has been further encouraging a decline in long-term interest rates.
In this situation, while concerns over the European debt problem have abated further, global financial markets have remained susceptible to developments in U. S.
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