What Is The Extremity Of The European Financial Crisis

The Troika, made up of the International Monetary Fund, European Commissions and the European Central Bank have the most to lose in this debt crisis as they own 78% of Greek debt. With so much to lose we have seen European “bailout” agreements that mostly front the Greek government more money coupled with crippling austerity in an effort to “rebuild” the economy. Austerity discourages growth as it cuts the spending of the government who is by far the biggest spender in the economy. The effects of austerity can be devastating, but the true effects are often hidden beneath the messages we get from mainstream news sources. The stereotype of the Greek people as lazy and tax evading has desensitized the public and has made austerity seem like more of a sensible option. The media messages have made strict austerity measures seem justified and in effect have hegemozined the Greek people.

The article “How Germany Prevailed in the Greek Bailout” discusses Germany’s successes financially in comparison to most other (19 countries) in Europe. Although Germany has such success others see the country as a bully almost due to their militaristic background even though they have come to the aid of Greece and helped. Many other European countries are hesitant about Greece receiving aid considering the countries past failures financially. This is not the first time the country has been in debt and undoubtedly will not be the last. Since the economy fell in 2008 Greece’s unemployment rate is about 22% which is double the U.S. Due to an imbalance in European countries where some are creditors and others debtors it is difficult to fix this

Being unaware about issues on the other side of the world made me realize on intriguing economic debt crisis that is going on in countries that seem like they are holding together. Greece and the European was a great issue to discuss and view both sides before since I was unaware that there was a long going crisis going on in this side of the world. Greece can either get a so many bailouts repeatedly or they can fend for themselves to find how the country is able pay back the debt they owed the EU within the past years. In my opinion, I think that Greece should give the money from the EU to survive.

From the Financial crisis that struck the United States in 2008, to the world economic crisis and currently the European debt and sovereign crisis, the snowball is growing each day as the whole world's economy is heading towards the rock bottom. This project tackles the issue and the causes of the European debt crisis and its consequences on the euro currency and on the international financial markets. It also focuses on examining the austerity measures and policies taken by European governments to bail their countries out of the turmoil, and finally it tenders solutions that could be undertaken by governments to face or unravel such

Economists describe the global crisis of 2008 as the worst financial crisis since the Great Depression. National banks assisted in bailouts to prevent large financial institutions from collapsing, and that was only prevented by the help of national banks, who assisted in bailouts. Although national banks stepped in, stock markets dropped all over the world. The crisis is the cause for the failure of many businesses and a loss of trillions of U.S. dollars in consumer wealth, along with decreased economic activity and the nation-wide debt crisis over in Europe. There were many countries affected by the global financial crisis, one in particular being Greece. Many people think the problems in Greece started with the financial crisis, but the country’s debt problems started long before the crisis, tracing back to the 1970s. The Greek economy was not prepared to deal with the economic downturn, because of its large gap between revenue and expenditures.

The European Debt Crisis often referred to as the Eurozone Crisis, struck the European Union at the end of 2009.

The Greece debt crisis started in the year 2009 where one of the largest rating companies downgraded Greece bond to a low rate and mentioned that Greece has the opportunity to default their debt (Greece timeline 2012). Austerity measure has been reveal in the January 2010. During March 2010, Greece finance minister claim Greece has suffer

The Eurozone is facing a serious sovereign debt crisis. Several Eurozone member countries have high, potentially unsustainable levels of public debt. Three—Greece, Ireland, and Portugal—have borrowed money from other European countries and the International Monetary Fund (IMF) in order to avoid default. With the largest public debt and one of the largest budget deficits in the Eurozone, Greece is at the centre of the crisis. The crisis is a continuing interest to Congress due to the strong economic and political ties between the United States and Europe.

As of 2014, Greece -along with other nations of the Eurozone- is facing grave sovereign debt issues, which have helped worsen the economic and political aspects of the nation. Some members, like the case of Ireland, Portugal, Spain and the aforementioned Hellenic nation, have unendurable levels of public debt, and have been receiving aid packages from the European Union and International Monetary Fund to avoid default. However, despite these financial aids, the nation still presents economic complications that threaten to affect the country 's payments to its international commitment. Similarly, such loans and other measures taken in order to control the crisis (budget and job cuts, among others, which will be later explained) have provoked violent riots and strikes, leaving the nation in a constant state of unrest.

The economic crisis of 2008 in New York had ripple effects around the world, causing deep structural problems within the European Union to crumble the economies of several countries. These countries, known as the PIGS, are made up of Portugal, Ireland, Greece, and Spain, and collectively hold most of the sovereign debt problems of the European Union. After fast growth early in the decade, these countries were spending too much money and not securing their own banking sectors with enough capital. Soon, the debt the PIGS owed caused massive problems throughout the EU, and Germany and France had to come to the rescue of these poorly managed countries. (Greek Crisis Timeline, 1) Now, in 2012, the issue has yet to be fully resolved. Greece is still sinking, and a massive bailout for Greece's banks is required. The debate is whether Germany should continue bailing out Greece and collecting interest on its loans, or whether Greece should try to separate itself from the broader European Union, in an attempt to manage its own finances and declare bankruptcy in order to save itself from crippling interest payments. Each path offers an escape from the present situation that Greece finds itself in, but only the path of bailout results in a harmonious European Union. If Greece fragments off from the EU, then the entire union is weakened as a result. I believe that Greece should accept the terms of the bailout that Germany has provided, and should undergo several years

In Europe, as it is plagued by high unemployment, feeble wage gains, and a decent credit market the international recession continues to thwart economic recovery. These factors set tremendous restraint on consumer disbursement and company investment, the latter of which is restricted to considerable excess capacity and issues about the durability and sustainability of recovery. Italy and Spain carry on to fight, while Germany has gained from exports to China, and Greece has become practically insolvent. In reality, in accordance with the panelists, all holders of Greek bonds must take a 30 % "haircut" on

Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal the whole event, a comprehensive review of the background is

Maybe his words are right, but it is also necessary for us study Greece first if we need to know what is really happened for the euro zoon. As Reuters (22 Dec 2009, P, 1) shows, in early 2009, the new Greece government had exposed that the true budget deficit of Greece would be 12.7% not as the government had announced before. After the cheating activities coming to light, the three international credit rating agencies, Standard & Poor 's, Moody 's Investors Service, and Fitch, had downgraded the Greece to a low standard one by one for its large sovereign debt. It is because of this event that the whole euro zone came to fell into the crisis, in turn, and the economy of euro zone was hit hard. It might be an economic problem when we saw it at first sight, the huge sovereign debt which was as high as 12.7% of its GDP in 2009, and its economy definitely cannot afford the huge debt (Wilkinson 2012). This might be a reason for the market holding a pessimistic altitude of the debt default.

The purpose for this paper is understand why & how the Greece ended up with the worst debt crisis of our lifetime. Other objective of the paper is to analyze its historical reasons, and the challenges of the European Union, Europe and the world economy to the Greek crisis.

The European debt crisis is a culmination of many factors and long gone are the days of economies not being tied to each other. With modern globalization, major financial crisis’s can lead to worldwide turmoil and economic downturn. What happens in other markets, will not only affect their market, but markets all over the world. Because of this, the European debt crisis is not just Europe’s problem, but rather everybody’s problem.