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European Debt - Financial Crisis

            The European debt crisis is a recent financial event that has affected many different countries around the world. Europe has implemented the Euro as a common currency among 17 countries. There are also 10 countries in Europe that are a part of the Eurozone but do not use the Euro as their currency. The Euro crisis was preceded by the global financial downturn that soured economies throughout 2008–2009. Europe has accumulated a lot of debt and has been struggling to pay their debts back; this has led to a financial crisis. The European crisis was driven by excessive debt and the need for many government bailouts. This debt has damaged the European currency and pushed many nations into a recession, and this has led to high unemployment and widespread poverty. The governments in Europe have been trying to cut spending and raise taxes but this has led to many protests and riots. When growth slows, so do tax revenues – making high budget deficits unsustainable. "Some experts say Europe's economic woes are holding back economic recovery in the United States by undermining consumer confidence, exports and investments and that the U.S. government should do more to help Europe fix its problems. (Hack, C 2012)" They say that if those on the Atlantic are having financial trouble it immediately affects those on the other side. Even after the US has taken measures to recover from the 2008 financial crash the US is still affected by the problems in Europe with the European banks.
             What led Europe to consider a common currency? For many years there was a push for Europe to have a monetary policy, for the countries to have a common currency throughout. Since the 1960's the European Union has been trying to implement the Euro. As stated in the book the adoption of the euro subjects all participating countries to the same monetary policy. The European Central Bank is responsible for setting monetary policy for all participating countries.


Essays Related to European Debt - Financial Crisis

1. Bank and Supervisory Responses to the Debt Crisis

The financial crisis that affected European Union's (EU) economies between 2007 and 2009 began in the United States. ... It also evaluates whether the banking and supervisory structures at European Union prove to be adequate in responding to the debt crisis. In order to respond to the debt crisis, European Union embraced the need to strengthen the policy coordination between its member states in 2011. ... The financial crisis indicates a serious weakness in the financial sector, as the systematic nature of the framework existent before the crisis was unable to respond to the debt crisis....

  • Word Count: 785
  • Approx Pages: 3
  • Has Bibliography
  • Grade Level: Undergraduate

2. The World Financial Crisis

One factor that causes this change is a financial crisis. ... Even though this crisis started in the financial sector, it has affected literally everyone. ... Effects Although the financial crisis had a distinct origin - U.S.A - it did not stop there. ... Many households were struggling to make payments related to their debts, whether it concerns mortgages or consumer credit. ... Social Conditions Some people argue that the financial crisis has turned into a social crisis. ...

  • Word Count: 1610
  • Approx Pages: 6
  • Has Bibliography

3. Dynamics of the Recent US Financial Crisis

The United Stated financial crisis began in September of 2008 when the most respected financial institutions fell. ... So in this financial crisis, the majority of the credit is actually owned by other financial institutions or foreign governments. ... Generally, the companies or individuals assets are used to pay down debt and refinance existing debts. ... Bailing out AIG effectively meant rescuing Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch and many European Banks from huge losses. ... Lehman Brothers collapsed, while the world's largest financial institution AIG wa...

  • Word Count: 1379
  • Approx Pages: 6
  • Has Bibliography

4. Financial Crisis During the French Revolution

The events of 14th July were in fact the result of a series of events which can be traced back to 20th August 1786, when Calonne (the General of the royal finances) informed Louis XVI that the state was on the brink of financial collapse.2 For this reason (as well as others which will henceforth be examined), although the French Revolution was caused by a mixture of economic, social, political, and intellectual factors, on balance, the financial crisis was arguably the most significant factor in leading to the outbreak of the French Revolution. ... Before that happened, however, the financial...

  • Word Count: 3440
  • Approx Pages: 14
  • Has Bibliography
  • Grade Level: Undergraduate

5. 2007-08 Financial Crisis: US and UK Financial Markets

Unfortunately, the 2007-2008 global financial crisis has demonstrated that financial globalization can lead to catastrophic outbreaks. ... The Global financial crisis erupted in 2008 and has touched almost all nations around the world. ... During this crisis millions of people lost their jobs, homes, their savings and got into very big debts. ... The roots of financial crisis where everything has started can be followed back to deregulation of financial markets in Western Europe, United Kingdom and United States, which has happened from late 1970s and the beginning of 1980s. ... CDO is a debt ...

  • Word Count: 2663
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: Undergraduate

6. Three Significant Global Issues

Global Financial Crisis Financial crisis, which started in the United States and then move to Europe , has now become global and requires a global response. ... In the European Union all members must signed the Maastricht Treaty, under which they promise to limit their deficit and debt levels. A lot of European Union member states, especially Greece and Italy, were able to evade these rules and camouflage their real deficit and debt levels with the use of complex currency and credit derivatives structures. ... Members state of European Union on 9-th May create the European Financial Stabilit...

  • Word Count: 769
  • Approx Pages: 3
  • Grade Level: High School

7. The Debt Situation in Greece

The government signed a memorandum of economic and financial policies for a three-year program with the so-called "troika: made up of the IMF, the European Commission and European Central Bank. ... To date, more than 20% of deposits have been lost since the beginning of the crisis in early 2010. ... The Bailout Program In the 2011, European Summit agreed on a new program to assist Greece in this crisis, the agreement between the IMF, and private sectors to provide financial assistance to Greece for €190 billion ($230 billion). ... That's is why in 2010 the European member states...

  • Word Count: 1464
  • Approx Pages: 6
  • Has Bibliography

8. Germany, Greece and Existing Debt

It seems to me that a major part of their continued financial support is due to the fact that they have a lot at risk if the Greek economic situation deteriorates further. ... Germany and other Northern European economies are somewhat stuck in a tricky situation here. ... This is why other Northern European economies such as France, Belgium and Netherlands all hold Greek debt as well. ... It can be argued that the Germans might feel a certain responsibility for the Greek debt crisis. ... The Greeks would somewhat benefit though because they could print money to inflate their way out of debt. ...

  • Word Count: 731
  • Approx Pages: 3
  • Grade Level: High School

9. Crisis in Argentina

In what seems like a chapter from the Russian Revolution, thousands of Argentines have saved their jobs by seizing control of debt-ridden factories when the bosses fled. ... Rather than put their money with the financial institutions, where you don't know what's going to happen to it, people in Argentina keep it as grain in the countryside. ... The integration managed to provide a growth in interregional trade in the sixties and seventies, but in the eighties foreign debt and the world crisis slowed this down. ... As an example, some barriers protecting regional industries must be re...

  • Word Count: 3213
  • Approx Pages: 13
  • Grade Level: Undergraduate

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