While the discretionary measures were of significant magnitude, a large part of the following deterioration in public finances was caused by automatic stabilizers. Corporate tax revenues collapsed throughout Europe. Countries which had experienced significant property bubbles before the crisis were also faced with a strong decline in tax revenues related to property (such as transaction taxes, capital gains taxes, VAT on newly-built houses, etc.).
2. Europe off balance  We face a crisis that is no longer confined to individual countries. Throughout Europe, it weighs heavily on people’s minds and challenges the viability of monetary union in its current form. It is obvious to all of us that the crisis has to be resolved and future crises must be prevented.