Greece or Spain's Economic Crisis Affect European Countries and the World

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Greece or Spain's economic crisis affect European countries and the world Introduction At the tail of the global financial crises in 2007-2008, Europe was ceased by an internal crisis. Though, it was initially contained in the periphery that is southern Europe, its magnitude and possible impact for the rest of Europe & the world was such that it became widely known as the "Eurozone Crisis". The genesis of this crisis can be traced back to the availability of easy money in international financial markets and lack of sufficient policing in the European Union to avoid over consumption. Why the Crisis? One of the principle events of the 21st century has been the formation and development of the international financial markets. Capital controls have largely been removed which has created a larger pool of private or commercial resources from which countries can finance their expenditures. Riding on this wave of easy finance coupled with enhanced credibility through their membership in the European Union; Portugal, Italy, Ireland, Greece and Spain now derogatorily known as "PIGGS" borrowed much beyond their means. The financial markets provided easy access to liquidity to these countries assuming that self-discipline in macroeconomic indicators, such as current account deficits, would be exercised by them to retain their membership in the European Union under the Maastricht Treaty. On the other hand, there was little accountability to ensure the implementation of the
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