Aspects of the Recent Economic Behavior of the European Community and the Similarity with the Japane

A low level of fiscal deficit and a heterogeneous level of public debt are part of the current economic situation of the European Community. Indeed, according to the European Information Agencies, the government fiscal deficit of the Euro Zone (19 countries) closed the first quarter of the year by -0.5% of GDP (Gross Domestic Product) lower than -1.1% recorded in the last quarter of 2.018, but higher than -0.3% of the first quarter of the previous year.

In the European Community (28 countries), the budget deficit was reduced by four tenths compared toward the previous quarter, standing at -0.6% of GDP and with a level equal to that recorded a year ago in the first quarter. The countries with the highest fiscal surplus are Luxembourg, with a positive result of 3.2% of GDP, Bulgaria 2.9%, Netherlands 2.7% and Germany and Malta, with 2.3% each. At the opposite extreme, the largest fiscal deficits in relation to the size of the economy were recorded in Romania, with -4.5% of GDP, France -3.6%, and Belgium -1.9%. Other countries, Great Britain -0.7%, Sweden -0.1% and Denmark 1.2%.

In the Euro Zone economy, public debt reached 85.9% of GDP in the first quarter of the year, eight tenths above that recorded at the end of 2.018, although below the 87.1% level recorded in the first quarter of the last year.

In the European Union (EU) as a whole, the volume of debt reached 80.7% of GDP, seven tenths more than at the end of last year, although nine below the proportion observed a year earlier. The countries with the highest debt are, Greece (181.9% of GDP), Italy (134%), Portugal (123%), and Cyprus (105%), while the lowest levels of leverage were observed in Estonia (8.1%), Bulgaria (21.2%) and Luxembourg (21.3%). Other countries, France 100%, Spain 99%, Great Britain 85%, Finland 59%, Netherlands 52% and Denmark 34%. Compared to the fourth quarter, the debt ratio increased in twelve EU countries and fell by thirteen, while remaining stable in Germany, Lithuania and Slovakia.

On the other hand in Europe the relief of the president of the European Central Bank (ECB) will be carried out on october 31 and as monetary policy measures that they have present to implement in the short and medium term, that they print, as mentioned by newspapers and International experts, a new boost to the economy of the Euro zone are the following. Retake net purchases of assets from the last quarter; They are also considering making a reduction in the deposit facility rate, currently at -0.4%. Another measure that they are exploring together with the rest of the central bankers is to "relax" the inflation objective of the ECB, to allow inflation to be above 2%. Thus, the monetary authority may apply the stimuli to monetary expansion without worrying about exceeding the 2% limit.

The decade after the economic crisis that began in 2.008, has left an economy of developed countries recovered and without inflation and with low interest rates in central banks, in order to face the next recession. The Federal Reserve has been able to partially recover the increases in interest rates. In Europe, the economic recovery has not been as vigorous, and growth has not ended up moving to wages to create inflationary dynamics.

Other theories, mentioned by International Information Agencies, suggest that there is a structural change in the European economy that is on its way to Japanization, with deflationary forces such as population aging and digitalization of the economy. In Japan, the living standards of its population have continued to increase at a rate similar to that of other advanced countries. The similarities between the Eurozone and Japan are framed by negative interest rates, stable bank profitability, massive asset purchases by the central bank and low GDP growth and low inflation.

In Japan, the public debt registers 230% of GDP, the fiscal deficit -3.7% and due to the solidity of its economy it presents a high rating by the global risk rating agencies. In Europe, the most indebted countries, as mentioned above, have medium and low ratings.

Although Japan's GDP (the third worldwide) has grown more slowly than that of the USA in recent decades, GDP per capita has grown faster supported by a population decline and low but steady productivity growth. The unemployment rate in Japan is at 2.4%, very close to historical lows. In Europe, the unemployment rate has subsequently declined the economic crisis of 2.008 and is currently at 7.5%.

In the heterogeneous Eurozone, the tensions and differences between countries in their economic development and the use of fiscal policy, put forward the longterm reforms so that the Eurozone union in fiscal and economic matters is accelerated and thus have a smooth and more homogeneous Japanization.

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Today, in terms of world markets, the stock markets grow in Europe and in the future preopening of New York due to the confidence in the European Central Bank on the conduct of monetary policy and the expectation of results with Corporate earnings in the second quarter of the year.

The price of oil rises due to tensions in the Midwest between Iran and Britain. The WTI records 57 dollars a barrel and the BRENT 64 dollars.

In Colombia the peso opens with devaluation at 3.177 per dollar with respect to the TRM for today of 3.170.