Greece's Debt Crisis
Greece’s debt crisis is one of the most well known and urgent economic issue in the current world. It all began in 2001 when Greece adopted the euro, becoming the 12th country to join the European Union before the launch of the euro in 2002. Greece’s finance minister at the same said that this step would place Greece at the heart of Europe, but warning signs were already present. The euro ended up leading to low interest rates. When Wall Street imploded in 20018, Greece became the center of Europe’s debt crisis. By the spring of 2010, it was veering towards bankruptcy. To avert chaos, the IMF issued an international bailout for Greece. These bailouts came with conditions, which where harsh austerity terms, deep budget cuts, and tax increased. The money was supposed to buy Greece time, but their economic issues have not gone away. The economy has shrunk by a quarter in five years and the unemployment rate is at 25%, an almost unheard of number. The bailout money went towards paying off the country’s loans, not towards the economy. There has been another bailout from the EU, but the country still struggles, with suicides and deaths increasing and people losing their homes.
Greece’s debt crisis is one of the most well known and urgent economic issue in the current world. It all began in 2001 when Greece adopted the euro, becoming the 12th country to join the European Union before the launch of the euro in 2002. Greece’s finance minister at the same said that this step would place Greece at the heart of Europe, but warning signs were already present. The euro ended up leading to low interest rates. When Wall Street imploded in 20018, Greece became the center of Europe’s debt crisis. By the spring of 2010, it was veering towards bankruptcy. To avert chaos, the IMF issued an international bailout for Greece. These bailouts came with conditions, which where harsh austerity terms, deep budget cuts, and tax increased. The money was supposed to buy Greece time, but their economic issues have not gone away. The economy has shrunk by a quarter in five years and the unemployment rate is at 25%, an almost unheard of number. The bailout money went towards paying off the country’s loans, not towards the economy. There has been another bailout from the EU, but the country still struggles, with suicides and deaths increasing and people losing their homes.
Italian Debt Crisis
While eyes have been turned towards Greece’s economic crisis and Brexit, Italy’s debt crisis has gone unnoticed. Their problem arises from the fact that they are deep in international and non preforming loans, and interest rates are falling. Individuals and private corporations located in Italy also are in loan debt. These issues are much like Greece’s, yet most people do not know that Italy is on the cusp of disaster. This debt issue threatens their position in the Eurozone. Shares have dropped 75%, bonds are being lost, and credit ratings for the country have dropped. These things all cause for economic slowing.
While eyes have been turned towards Greece’s economic crisis and Brexit, Italy’s debt crisis has gone unnoticed. Their problem arises from the fact that they are deep in international and non preforming loans, and interest rates are falling. Individuals and private corporations located in Italy also are in loan debt. These issues are much like Greece’s, yet most people do not know that Italy is on the cusp of disaster. This debt issue threatens their position in the Eurozone. Shares have dropped 75%, bonds are being lost, and credit ratings for the country have dropped. These things all cause for economic slowing.
Spanish Financial Crisis
The present Spanish financial crisis began during the world financial crisis of 2008. The main cause of Spain's Crisis was the housing bubble that resulted from the quick growth of real estate prices, and the uncontrollably high GDP growth rate. The Spanish Government eased up on financial sector supervision, which allowed the banks to violate codes and hide loses, which mislead analysts, regulators, and most importantly investors. The results of this were several increases in unemployment and widespread bankruptcy. Of course, the European Union and multiple monetary supervisors stepped in and implemented austerity measures , market reforms, and fiscal regulations.
The present Spanish financial crisis began during the world financial crisis of 2008. The main cause of Spain's Crisis was the housing bubble that resulted from the quick growth of real estate prices, and the uncontrollably high GDP growth rate. The Spanish Government eased up on financial sector supervision, which allowed the banks to violate codes and hide loses, which mislead analysts, regulators, and most importantly investors. The results of this were several increases in unemployment and widespread bankruptcy. Of course, the European Union and multiple monetary supervisors stepped in and implemented austerity measures , market reforms, and fiscal regulations.