Euro Zone Crisis
Index Sr. No. | Particulars | Page No. | 1 | The Euro-zone – A background | 3-3 | 2 | The Euro-zone crisis – Beginning and causes | 3-4 | 3 | Evolution of the Crisis | 4-7 | 4 | Country wise Analysis | 7-17 | 5 | Structural Problems with Euro-zone and the Crisis | 18-19 | 6 | Political impact on Euro countries | 19-20 | 7 | Implications of Euro-zone crisis on Developed countries and Emerging economies | 20-23 | 8 | Possible Solutions for the crisis | 23-25 | 9 | Measures undertaken to resolve the crisis | 25-25 | 10 | Lessons Learnt From Euro Zone Crisis | 26-26 | 11 | What India Can Learn | 27-27 | 12 | Annexures and References | 27-29 |
1] The Euro Zone: A background
On January 1, 1999 eleven European countries decided to denominate their currencies into a single currency. The European monetary union (EMU) was conceived earlier in 1988–89 by a committee consisting mainly of central bankers which led to the Maastricht Treaty in 1992. The treaty established budgetary and monetary rules for countries wishing to join the EMU - called the ―convergence criteria. The criterion were designed to be a basis for qualifying for the EMU and pertained to the size of budget deficits, national debt, inflation, interest rates, and exchange rates. Denmark, Sweden, and the United Kingdom chose not to join from the inception.
The "Euro system" comprised the European Central Bank (ECB), with 11 central banks of participating States assuming the responsibility for monetary policy. A large part of Europe came to have the same currency much like the Roman Empire, but with a crucial difference. The members were sovereign countries with their own tax systems. Greece failed to qualify, but was later admitted on 1 January 2001. The ‘Euro’ took the form of notes and coins in 2002, and replaced the domestic currencies. From eleven euro zone members in 1999, the number increased to 17 in 2011.
2] The Euro zone crisis:
Over the last two years, the euro
1] The Euro Zone: A background
On January 1, 1999 eleven European countries decided to denominate their currencies into a single currency. The European monetary union (EMU) was conceived earlier in 1988–89 by a committee consisting mainly of central bankers which led to the Maastricht Treaty in 1992. The treaty established budgetary and monetary rules for countries wishing to join the EMU - called the ―convergence criteria. The criterion were designed to be a basis for qualifying for the EMU and pertained to the size of budget deficits, national debt, inflation, interest rates, and exchange rates. Denmark, Sweden, and the United Kingdom chose not to join from the inception.
The "Euro system" comprised the European Central Bank (ECB), with 11 central banks of participating States assuming the responsibility for monetary policy. A large part of Europe came to have the same currency much like the Roman Empire, but with a crucial difference. The members were sovereign countries with their own tax systems. Greece failed to qualify, but was later admitted on 1 January 2001. The ‘Euro’ took the form of notes and coins in 2002, and replaced the domestic currencies. From eleven euro zone members in 1999, the number increased to 17 in 2011.
2] The Euro zone crisis:
Over the last two years, the euro