Germany Frankfurt ( AP ) -- the European financial crisis the worst seems to be over.

European leaders have taken measures, to ease the panic has plagued the region of the three turbulent years. Financial markets are no longer in a state of emergency, European government debt and fragile banks. This gives politicians from 17 countries using the euro breathing space, solve problems.

Threat still exists, in Greece and Spain, and of Europe's economy is expected to turn for the better worse before they get better. However, an impending disintegration, the euro now seems unlikely, analysts said.

" We may go far beyond the worst, said: " Gu Shimiding Belem Berg, chief economist at the bank in london. He said, in the occasional unexpected financial market is possible, but "future turbulent tide so serious. "

The national decline in the cost of borrowing, stock prices and the slow but steady in the region of the stability of banking system, Europe has turned a corner evidence can be found in:

- investors demand to lend to struggling countries, such as Spain and Italy interest rates fell sharply -- a sign that investors fear, default. Spain's 2 year bond interest rate or yield less than 3% - 6.6% July 24th peak. Italy bond yields also dropped significantly.

Storck 50 index of leading European stock has risen to 26%, since June 1st, and the euro was at $1.26 to $1.29, higher than the same period last year.

- after months of withdrawals, deposits, emerge in large numbers back to Greek and Spanish banks, suggestive of its upcoming financial meltdown worries decline. While the United States money market mutual funds out of more than 16%, the euro zone banks in September. It was the third straight month of increase in short-term funds of the European banks, and following the 2011 since May 70% lower.

More evidence of the crisis: European finance ministers to moderate party no longer causes the global stock market and bond market, cyclotron every sign of progress or setback.

With the financial market panic recedes, the leaders of the eurozone have more time to try to resolve their currency union defects. One of the challenges is to reduce business regulations and other costs, in order to stimulate the economic growth, and apply a more centralized authority, the state budget, prevent subsequent to spend beyond their means. This is important, because the crisis was an important reason in peace after many years, the introduction of the euro in 1999, Italy's defeat, cut high debts we like service level and Greek. Other countries - such as Spain and Ireland - burdened with debt accumulates more and more banks and real estate developers in the period of prosperity.

Most of the credit easing the European financial crisis " of the European Central Bank, which has become more active under the leadership of Mario Delagi, in the past year.

The European Central Bank said, in September 6 it is willing to buy an unlimited amount of effort to repay the debt issued by the national government bonds. The European Central Bank 's commitment, immediately lower borrowing costs in Spain and Italy, earlier in the year are facing financial pressure, forcing the Ireland, Greece and Spain to seek relief of.

" Confidence in financial markets have improved significantly, " drudge said Thursday in a news conference.

The European Central Bank action reminiscent of financial crisis in the United States, the Federal Reserve Board in late 2008 and early 2009 act of aggression. The Federal Reserve Bank of low-interest loans, and began to buy bonds, to ease the long-term lending rates and improve consumer and business confidence.

The Fed did not solve the problem of high unemployment rate. But its actions to resolve the financial market panic, and help restore the health of the American bank. Fed purchases of the economy began healing time.

German Chancellor Angela Angela Merkel ( Angela Merkel ) also said that more effectively to hold euros, help alleviate financial tensions in europe.

Merkel's support is essential, because Germany is the euro zone 's largest economy, has the most shares in any rescue finance. Merkel supported the European Central Bank 's bond purchases, and achieved reconciliation statements to the greek.

This paved the way for the international lenders, the so-called three carriages - the European Central Bank, the European Union and the International Monetary Fund ( IMF ) - allows more time to meet the Greek deficit reduction target. The Greek parliament Wednesday as a step forward, approved a new taxes and spending cuts to the three drive carriage safety next batch of relief loans.

In the financial crisis of another important breakthrough was in late June, when leaders held a meeting in Brussels to take new measures, in order to stabilize the banks and the government. They agree to alleviate on certain level the tightening requirements, the use of TARP funds to buy government bonds, and help run banks and all of Europe's banks to establish a single supervisor.

Some analysts worry that, due to financial pressure to reduce European leaders may lose their recent momentum.

Euro "breaking up can still, said: " Marie Diron, Ernst & Young's senior economic adviser. " I don't think we have to completely remove the risk. "

European leaders leave huge challenge.

The most urgent is to save greece. If the country was forced to default and start printing your own money, investors will bear and other countries may start to pull out own money, these countries, or to demand a higher return rate stays there. The next few months Germany would help a severe test. Despite 2 of a total of 240 one billion ( 311.3 $one billion) rescue since 2010, Greece needs to estimate 3000000000 from other euro-zone countries, economic atrophy.

Belem, Berg Schmieding think there is a 25% chance, Greece will exit from the euro in the next 6 months, if Congress than in painful austerity measures and eurozone member countries are reluctant to provide more help. But he thinks, a Greek starting point, causing temporary loss ". " Other economists say, it may undermine the euro.

Another hot spot for Spain, the eurozone's fourth largest economy. The country's debt pile up like a mountain hand higher areas of government and economic contraction. The European Central Bank 2 months ago to provide unlimited buying government bonds is a potentially life protection, but the country's prime minister Mariano Rajoy to formally request assistance. He served, apparently hoping that the current market still will continue, he would not have suffered political humiliation rescue. Analysts said that, if he waited too long to Spain 's borrowing costs to rise again to unsustainable levels, and once again lead to a more extensive concerns in financial markets.

The bank is another problem. Weakening of the huge losses, they buy government bonds and real estate loan will not be repaid, the euro zone banks have propped up the government financially struggling. Even with the help of, these banks were forced to reduce lending, which hurt the European economy.

One for all of Europe's banking regulators can provide some relief, by forcing the crippled banks merged with health. But it will be the second half of next year, at the earliest, supervisor, analyst say. European leaders agreed on how much power to supervisor, as well as how to finance.

Economic growth is the ultimate European crisis. But strong growth is still far away. 22 European Union forecast, 17 in the euro area economy to grow 0.1% in 2013.

Privately, European officials said, the European Central Bank 's bond purchases, as they provide a critical window of opportunity -- a year, maybe - to solve their biggest challenge.

This depends to a large extent they say that, in this period of time was completed.



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