Jose Antonio Morales A01204002
Juan Jose Zubiri A01202069
Eduardo Balderas A0120
Companies & Businesses Around the World
Eurozone Crisis: Main causes. Possible effects if the Eurozone fall apart. Why Greece collapsed?
The Eurozone, is an economic andmonetary union EMU, formed by 17 countries who are members of the European Union. The euro is their common currency and legal tender. Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain, form the Eurozone.
The Eurozone crisis is Europe’s struggle to pay off the debts they built up in recentdecades. Countries like Greece, Portugal, Ireland, Italy and Spain are failing to create enough economic growth, therefore making them no able to pay their debt. Global economy, since the U.S. financialcrisis, has experienced a slow growth, with this exposing the unsustainable fiscal policies of many countries. The debt has made it difficult for countries to re-finance their government debt,without getting a third party involved. The causes for the European crisis were a result from different complex factors. One of them being the globalization of finance, easy credit conditions caused theencouragement of high-risk lending and borrowing. Other causes were the 2007-2012 global financial crisis, international trade imbalances, real estate bubbles that reached unsustainable levels, the2008-2012 global recession, the choices taken concerning the fiscal policies in relation to government revenues and everyday expenditure, as well as the approaches taken by nations to help out bankingindustries and bondholders in trouble, by assuming private debt burdens or socializing losses.
The possible effects, of the Eurozone falling apart are both negative and positive, since it would...