The European economy

Laurens Leeman2BFV01

• Germany VS the European crisis• Solutions to solve the crisis• ‘What when the European crisis is solved?’• Conclusion

GDP Growth Germany % 4 3.2 2.9 3 2.5 2 1.2 1.2 0.7 0.8 1 0.3Growth (%) 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 -1 -2 -3 -4 -5.3 -5 -6 Years

2011 2.9% 2.1% 72.41%2012 0.8%

France:• Eurozone’s bailout fund = bank Borrow from the European Central Bank (ECB)• Germany refused

Germany• Increasing the size of the Eurozone’s bailout fund• ≠ increasing the liabilities of German tax payersAnother solution• Banks: ≥ 50 percent loss on their Greek debt

• How to get the economies moving again?• Greece and Italy: cut their budget deficit like Ireland and LatviaProblem:Latvia and Ireland: after periods of strong growthOnly works when a couple of countries use it

•  Global economys rebound will be longer, slower and weakerSolution:• Money from the rich parts spent in the poorer parts• In the meantime: national debt of individual countries tradeable EU bonds.

• European crisis still threatens all Europe• Real solution is necessary• Even when the financial crisis is solved: how to get the economies of the Eurozone moving again?

The European economy

by LaurensL

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