Remarks on the euro crisis
[Introduction] The euro crisis evolves out of the global financial crisis, which erupted with the collapse of Lehman Brothers in September 2008. Starting point of the euro crisis was the statement of the Greek government in autumn 2009 that budget deficit may be much higher than announce in the beginning of 2009. In early 2010 financial market expectations pointed in direction of possible Greek sovereign default. In May 2010 some secondary markets for government bonds began to dry up completely and the EU council agreed to a rescue plan for Greece. This plan could not dam up the concerns regarding the debt situation in Portugal and Ireland. During the ongoing crisis process these countries are supported by rescue plans (see Todev, Brazda, Laurinkari 2013). Rescue plans are not an instrument of the legal arrangement of the European Union or of the Eurozone. Therefore, new arrangement has had to be established since then. Moreover, the euro crisis is not only a sovereign debt crisis. It contains at least a banking crisis and macroeconomic crisis. All these parts are strongly connected. In the paper the main links are described. Furthermore, new legal arrangements and developments are presented to handle the sovereign debt, banking and macroeconomic crisis. In the beginning the changes deals with the sovereign debt crisis. Countries, which got support of other countries, had to accept changes in their public budget structure. To some extend the policy changes should help to solve reasons of the debt situation and of the macroeconomic crisis. In 2012 the EU council focused on the banking crisis, where the EU agreed to establish a banking union. The macroeconomic crisis is apparent by high unemployment rates and real GDP decreases. One main reason behind these characteristics is the lack of competitiveness of some economies. This point is addressed in the paper. At the end of the paper political aspects of the crisis politics should be mentioned. It is dealing with the income and wealth situation of some EU countries.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dreger, Christian & Reimers, Hans-Eggert, 2012.
"Does euro area membership affect the relation between GDP growth and public debt?,"
327, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
- Dreger, Christian & Reimers, Hans-Eggert, 2013. "Does euro area membership affect the relation between GDP growth and public debt?," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 481-486.
- Christian Dreger & Hans-Eggert Reimers, 2012. "Does Euro Area Membership Affect the Relation between GDP Growth and Public Debt?," Discussion Papers of DIW Berlin 1249, DIW Berlin, German Institute for Economic Research.
- Boris Cournède & Antoine Goujard & Álvaro Pina & Alain de Serres, 2013. "Choosing Fiscal Consolidation Instruments Compatible with Growth and Equity," OECD Economic Policy Papers 7, OECD Publishing.
- Baum, Anja & Checherita-Westphal, Cristina & Rother, Philipp, 2013.
"Debt and growth: New evidence for the euro area,"
Journal of International Money and Finance,
Elsevier, vol. 32(C), pages 809-821.
- Stephen Cecchetti & Madhusudan Mohanty & Fabrizio Zampolli, 2011. "The real effects of debt," BIS Working Papers 352, Bank for International Settlements.
- Philippine Cour-Thimann & Bernhard Winkler, 2012.
"The ECB’s non-standard monetary policy measures: the role of institutional factors and financial structure,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 28(4), pages 765-803, WINTER.
- Cour-Thimann, Philippine & Winkler, Bernhard, 2013. "The ECB’s non-standard monetary policy measures: the role of institutional factors and financial structure," Working Paper Series 1528, European Central Bank.
When requesting a correction, please mention this item's handle: RePEc:zbw:hswwdp:052013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.