Do European countries who use the Euro deficit spend?

Question

For example, They can't just print up more Euros to give away in foreign aid, when they just don't have the money to give away.

Answer 1

Yes, countries that use the Euro do deficit spend!

They loan money from private banks... but countries that use the Euro are limited to having a deficit of 3% of their GDP. This way, the currency isn't undermined.

If a country exceeds that, there is a fine (even though that would increase the deficit... yeah, they should think of a better punishment).

I hope this helps!

Answer 2

Of course the Euro Zone countries can deficit spend... However there is a rule that one years deficit cant exceed 2% of GDP..

Right now all the Euro countries are running a -.9% of GDP....

Answer 3

The currency doesn't affect whether or not the leader of a country decides to spend more than his country makes. They probably do, taking out loans when a government project requires more than the national income.

Answer 4

they can't print money b/c that creates inflation, which lowers the value of people's savings.

Answer 5

They can't? Oh Jeez, I must stop printing Euros.