Your SlideShare is downloading. ×
The Euro Crises: The End of the Beginning or the Beginning of the End?
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Euro Crises: The End of the Beginning or the Beginning of the End?

934
views

Published on

Analysis of the Euro crises.

Analysis of the Euro crises.


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
934
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Jason Cates 2011
  • 2. (The New York Times, 2011b) Jason Cates 2011
  • 3. (The New York Times, 2011a) Jason Cates 2011
  • 4. (The Economist, 2011) Jason Cates 2011
  • 5. The New York Times (2010) Jason Cates 2011
  • 6. (The Economist, 2010b) Jason Cates 2011
  • 7. Aim - To preserve the financial stability of the Eurozone byproviding financial assistance to member states ineconomic difficulty. (Up to €440 billion) (The Economist,2010a)How - Issues bonds to raise the finance needed toprovide loans to member states. (Bloomberg, 2011)Collaboration•€60 billion from the European Financial StabilisationMechanism (using the EU budget as collateral)•€250 billion from the IMF to obtain a financial safety netof up to €750 billion . (European Voice, 2011) Jason Cates 2011
  • 8.  The markets currently expect a default: as far as they are concerned, 50 - 70% of the money owed is as good as gone. (BBC News, 2011a) If this happens, it might trigger a so called "credit event“ for those who value and insure the countries debt. (BBC News, 2011a) Jason Cates 2011
  • 9.  This will cause investors to start de-risking their portfolios and we may come to a point where one bank refuses to lend to another. (BBC News, 2011a) This is a credit crunch and is what the Euro policy makers fear. If it is triggered, it will negatively impact the whole world economy . (BBC News, 2011a) Some French banks such as Societe Generale have already had their debt downgraded by the credit rating agencies. (BBC News, 2011b) Jason Cates 2011
  • 10.  Germany could leave the Eurozone allowing the remaining members to save the currency through depreciation, not austerity . (Financial Times, 2011) Germany could then create another currency union with other European countries who have a positive current account balance. (Financial Times, 2011) This new monetary union would create the worlds largest creditor bloc, bigger even than that of China. (Financial Times, 2011) Jason Cates 2011
  • 11.  In return for the bail-out funding to the EU’s fringe members, the Eurozone is implementing a much tighter fiscal union. (The Telegraph, 2011a) This will create a more centralised system giving more productive countries such as Germany more say over how Greece runs its fiscal policy . The markets saw this as being the best chance of a resolution to the current Euro crisis. (The Telegraph, 2011a) Jason Cates 2011
  • 12. • We are now seeing the creation of a new Eurozone bond market. (The Telegraph, 2011b) Junk national bonds can be exchanged with new EU- backed bonds. (The Telegraph, 2011b) These conversions will not be traded, saving them from speculation on financial markets. (The Guardian, 2011)• In opposition are the German, they believe that it will fall on them to guarantee the debts of stricken countries such as Greece. (BBC News, 2011c) Jason Cates 2011
  • 13. Jason Cates 2011
  • 14. • BBC News (2011a) Ten points on the Euro crisis Available at: http://www.bbc.co.uk/news/world-europe-13791879 [Accessed: 17th January, 2011]• BBC News (2011b) French bank ratings downgraded by Moodys Available at: http://www.bbc.co.uk/news/business-14910485 [Accessed: 17th January, 2011]• BBC News (2011c) Commission president Barroso to put forward eurobonds Available at: http://www.bbc.co.uk/news/business-14913517 [Accessed: 17th January, 2011]• Bloomberg (2011) European Rescue Fund May Buy Bonds, Recapitalize Banks, ECBs Stark Says Available at: http://www.bloomberg.com/news/2011-01-22/ecb-s-stark-says-rescue-fund-may-buy-bonds [Accessed: 17th January, 2011]• The Economist (2010a) Available at: The new head of the Eurozone SPV http://www.economist.com/node/16485600?story_id=16485600&fsrc=rss [Accessed: 17th January, 2011]• The Economist (2010b) Strong core, pain on the periphery Available at: http://www.economist.com/blogs/dailychart/2011/02/europes_economies [Accessed: 17th January, 2011]• The Economist (2011) Strong core, pain on the periphery Available at: http://www.economist.com/blogs/dailychart/2011/02/europes_economies [Accessed: 17th January, 2011]• European Voice (2011) Spain seeks to reassure EU leaders Available at: http://www.europeanvoice.com/article/2010/06/spain-seeks-to-reassure-eu-leaders/68293.a [Accessed: 17th January, 2011] Jason Cates 2011
  • 15. • Financial Times (2011) Available at: http://www.ft.com/cms/s/67c66cfc-819b-11e0-8a54-00144feabdc0,Authorised=false.html?_i_locat [Accessed: 17th January, 2011]• The Guardian (2011) Euro crisis needs leaders, not ideological battles Available at: http://www.guardian.co.uk/commentisfree/2011/jul/19/euro-crisis-leaders [Accessed: 17th January, 2011]• The New York Times (2010) Europes Web of Debt Available at: http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html [Accessed: 17th January, 2011]• The New York Times (2011a) 2010 Debt as a percentage of G.D.P Available at: http://www.nytimes.com/interactive/2010/04/06/business/global/european-debt-map.html [Accessed: 17th January, 2011]• The New York Times (2011B) Debt Rising in Europe Available at: http://www.nytimes.com/interactive/2010/04/06/business/global/european-debt-map.html [Accessed: 17th January, 2011]• The Telegraph (2011a) The euro crisis will give Germany the empire it’s always dreamed of Available at: http://blogs.telegraph.co.uk/news/peteroborne/100098260/this-crisis-will-give- germany-the-empire-its-always-dreamed-of/ [Accessed: 17th January, 2011]• The Telegraph (2011b) A euro crisis... but also an opportunity for Britain Available at: http://www.telegraph.co.uk/news/worldnews/europe/8650595/A-euro-crisis...-but-also-an- opportunity-for-Britain.html [Accessed: 17th January, 2011] Jason Cates 2011

×