Euro Crisis
Causes of the Euro zone debt crisis Eurozone
Euro zone (also known as the Euro area) consists of those European Union countries which have adopted the euro as their currency. It currently has 17 member states such as Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Monetary policy of the Euro zone is the responsibility of the European Central Bank (ECB) which is governed by a president and a board of the heads of national central banks.
However, there is no common representation, governance and fiscal policy in for the currency zone, but cooperation is presence among the Euro Group (comprises of the finance ministers of Euro zone states. In times of emergencies; would be the national leaders of the Euro zone states), to make political decisions regarding the Euro zone and Euro.
Eurozone debt crisis
Euro zone debt crisis is an ongoing financial crisis that has made it difficult or even impossible for a number of EU member states (Eg. Greece, Portugal, Ireland, Italy, and Spain) to either repay or re-finance their government debt without the assistance of a third parties.
These few EU member states in the Euro zone had failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it was intended to be. Although these countries were seen as being immediate danger of a possible default, the crisis has far-reaching consequences that extend beyond their borders to the world as a whole.
In summary, the Euro zone crisis originated with investor concerns about sovereign debt levels, which led to higher bond yields and unsustainable deficits. While a 750 billion euro rescue package was setup in response, the crisis continues to persist due in large part to political disagreements and the lack of a cohesive plan among
Euro zone (also known as the Euro area) consists of those European Union countries which have adopted the euro as their currency. It currently has 17 member states such as Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Monetary policy of the Euro zone is the responsibility of the European Central Bank (ECB) which is governed by a president and a board of the heads of national central banks.
However, there is no common representation, governance and fiscal policy in for the currency zone, but cooperation is presence among the Euro Group (comprises of the finance ministers of Euro zone states. In times of emergencies; would be the national leaders of the Euro zone states), to make political decisions regarding the Euro zone and Euro.
Eurozone debt crisis
Euro zone debt crisis is an ongoing financial crisis that has made it difficult or even impossible for a number of EU member states (Eg. Greece, Portugal, Ireland, Italy, and Spain) to either repay or re-finance their government debt without the assistance of a third parties.
These few EU member states in the Euro zone had failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it was intended to be. Although these countries were seen as being immediate danger of a possible default, the crisis has far-reaching consequences that extend beyond their borders to the world as a whole.
In summary, the Euro zone crisis originated with investor concerns about sovereign debt levels, which led to higher bond yields and unsustainable deficits. While a 750 billion euro rescue package was setup in response, the crisis continues to persist due in large part to political disagreements and the lack of a cohesive plan among