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Case Study of the European Financial Crisis
Executive Summary
The European Financial Crisis is an ongoing financial crisis exploded at late 2009, that has made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties.
The Crisis started from the Greek sovereign debt crisis and soon spreaded to other Euro zone countries. But it is not just a consequence of the debt crisis but more importantly, the result of a combination of complex factors, including structural problem of Euro zone system, financial deficit, trade imbalance and monetary policy inflexibility.
However, by considering the action taken by Euro zone countries before and after the crisis, it seems that they have done poorly in the crisis management. And even the continuance of Euro zone and euro has been doubted.
Hence a further set of reforming to policy and Euro zone structure must be take to maintain the ongoing of euro and Euro zone. Just like Jacques Attali (the founder and first president of the European Bank for Reconstruction and Development ) said in an exclusive interview with EurActiv 'The only way to save the euro and get Europe out the crisis while maintaining people’s living standards is to change EU treaties to have a more integrated union.'
Introduction and Aims
European financial crisis, unlike the subprime crisis in US, which the greed and ignorance of Wall Street should be blamed to; or the global financial crisis, which is more like the economic period issues we have seen many in the history. It is the 'labour pains' of a new European union maybe a new country, which never happened before. If the Euro zone and euro manage to survive in this crisis, the experience, policies and process will become the 'Case law' in the future, that will help avoid or at least diminish the negative impact in the similar situation.
The purpose of this essay is to
Executive Summary
The European Financial Crisis is an ongoing financial crisis exploded at late 2009, that has made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties.
The Crisis started from the Greek sovereign debt crisis and soon spreaded to other Euro zone countries. But it is not just a consequence of the debt crisis but more importantly, the result of a combination of complex factors, including structural problem of Euro zone system, financial deficit, trade imbalance and monetary policy inflexibility.
However, by considering the action taken by Euro zone countries before and after the crisis, it seems that they have done poorly in the crisis management. And even the continuance of Euro zone and euro has been doubted.
Hence a further set of reforming to policy and Euro zone structure must be take to maintain the ongoing of euro and Euro zone. Just like Jacques Attali (the founder and first president of the European Bank for Reconstruction and Development ) said in an exclusive interview with EurActiv 'The only way to save the euro and get Europe out the crisis while maintaining people’s living standards is to change EU treaties to have a more integrated union.'
Introduction and Aims
European financial crisis, unlike the subprime crisis in US, which the greed and ignorance of Wall Street should be blamed to; or the global financial crisis, which is more like the economic period issues we have seen many in the history. It is the 'labour pains' of a new European union maybe a new country, which never happened before. If the Euro zone and euro manage to survive in this crisis, the experience, policies and process will become the 'Case law' in the future, that will help avoid or at least diminish the negative impact in the similar situation.
The purpose of this essay is to