The euro crisis. Causes and consequences of the Greek debt crisis on the euro zone

Seminar Paper , 2018 , 22 Pages , Grade: 1,3

Economics - Finance

In this paper, these effects as well as the connection between the Greek crisis and the euro crisis are examined. To begin with, an insight into the causes of the debt crisis in Greece and how the crisis has spread to the eurozone. This will be followed by the euro crisis in general and its other causes. The fifth chapter deals with measures and solutions for Greece as well as the entire euro zone. This work finishes with a conclusion on the topics mentioned.

In recent years, the news and media have dealt extensively with the “euro crisis”. For this reason, it should be a common term for any European. The euro crisis isn’t about the euro, but about a currency, bank, economic crisis and about state debts. Because of the different opinions about the crisis’ causes, this topic is a very controversial one. It is common that the global financial crisis, which resulted from the Lehmann bankruptcy in 2008, is being considered responsible for the euro crisis. However, the global financial crisis wasn’t accountable.

There are other reasons for the outbreak of the euro crisis, such as the existing weaknesses of a system, which was already missing in structure, or America’s financial crisis. Not to forget, however, is the “Greek crisis” and its impact on the euro zone.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 2. Causes of the Greek dept crisis
• 3. Expansion on the euro zone
• 4. The euro crisis and its causes
  • 4.1 The emergence of public debts
  • 4.2 The differences in competitiveness
  • 4.3 The banking crisis
  • 4.4 The macroeconomic crisis
  • 4.5 The decision-making structures within the European Union
• 5. Solution approaches and rescue mechanisms
  • 5.1 Clamping the bailouts
  • 5.2 Structural revision and development of monetary unions
  • 5.3 Further development to the fiscal union
• 6. Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This term paper aims to analyze the euro crisis, with a particular focus on the Greek debt crisis and its impact on the euro zone. It explores the causes of the Greek debt crisis, both internal and external, and examines the broader context of the euro crisis, including the emergence of public debts, differences in competitiveness, the banking crisis, and macroeconomic factors. The paper also examines solution approaches and rescue mechanisms implemented for Greece and the eurozone.

• The causes of the Greek debt crisis
• The impact of the Greek crisis on the eurozone
• The broader context of the euro crisis
• Solution approaches and rescue mechanisms for the eurozone
• The implications of the euro crisis for the future of the European Union

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter introduces the euro crisis and its relevance, highlighting the controversial nature of the crisis and its causes. It sets the stage for the paper's focus on the Greek crisis and its impact on the eurozone.
• Chapter 2: Causes of the Greek dept crisis This chapter explores the various internal and external factors contributing to Greece's public debt, including the country's high current account deficits, falling prices, and excessive borrowing by companies and households.
• Chapter 3: Expansion on the euro zone This chapter delves into the expansion of the euro zone, examining the economic disparities among member states and the challenges posed by a single currency.
• Chapter 4: The euro crisis and its causes This chapter examines the euro crisis in detail, exploring the emergence of public debts, differences in competitiveness, the banking crisis, and the macroeconomic factors contributing to the crisis. It also analyzes the decision-making structures within the European Union.
• Chapter 5: Solution approaches and rescue mechanisms This chapter explores the measures and solutions implemented to address the Greek crisis and the eurozone crisis, including bailouts, structural revisions, and the development of monetary unions.

Schlüsselwörter (Keywords)

The paper revolves around the euro crisis, focusing on the Greek debt crisis, its impact on the eurozone, and its implications for the European Union. It examines key concepts like public debt, current account deficits, competitiveness, banking crisis, macroeconomic instability, rescue mechanisms, and the decision-making structures within the European Union.

• College: University of Applied Sciences Essen
• Grade: 1,3
• Author: Inga Rathje (Author)
• Publication Year: 2018
• Pages: 22
• Catalog Number: V511713
• ISBN (eBook): 9783346089120
• ISBN (Book): 9783346089137
• Language: English
• Tags: Euro crisis; Eurokrise; Greek Debt Crisis; Europa; Krise