New prescriptions of the European Union could result in recession

Like a chef, the European Union to try a new recipe for dealing with the debt crisis in the region. According to the Securities economist Samuel, Lana Soelistianingsih, the market's positive response to the decision. But in its realization would not be easy, and fiscal tightening EU certainly bring down even a recession economy.

The EU has always been a country with a deficit that exceeds the safe limit, which is 3 percent of GDP and government debt have over 60 percent of GDP. "The problem of fiscal debt crisis is a source of the EU," Lana said in his review on Monday (12/12/2011).

According to Lana, a new prescription which is applied in the EU this is a recipe in the fiscal field. At a summit in Brussels, Belgium, 27 countries joined the European Union (EU) except the UK and Hungary, approved the change (amendment) Lisbon treaty relating to fiscal consolidation, especially sanctions for violating the state's budget deficit limit of 3 percent of GDP .

In addition to these decisions, the EU also approved the implementation of a tax on each financial transaction. The EU also borrow from the IMF 200 billion euros (267 billion U.S. dollars) in anticipation of an economic slowdown due to fiscal tightening.

Related to the exchange rate, global markets closed positive sentiment at the close of trading last Friday, after the European Union except the UK agreed to a fiscal consolidation. Lana predicts Asia will be positive on the market today, including a potentially mengu rupiah at menuju range of Rp 9020 to Rp 9040 per U.S. dollar.