The document summarizes the euro zone economic crisis. It discusses the causes of the crisis, including the housing market boom and bust and government/central bank policies. It then outlines the impacts, such as increased unemployment, reduced trade balances, and falling tax revenues. Solutions proposed include restoring economic growth and reducing unemployment, as well as addressing long-term deficits and debt. The SWOT analysis identifies strengths like economic governance commitments and weaknesses like lack of financial aid benefits. Opportunities for stability and threats like decreasing population or revolution are also noted.

1. Akash mahat
Dinesh oli
Nisant Shrestha
Roma kafle
Sona pandey

2. Contents:
•Introduction
•Causes of Euro zone crisis
•Impact of crisis
•Solution
•SWOT analysis
•Summary
2

3. What is economic crisis?
Situation in which
the economy of a
country experiences
a sudden downturn
brought on by a
financial crisis
3

4. •value of money
4

5. 5
Time
GDP
Boom
Trough
Business cycle

6. Causes of euro zone crisis:
6

7.  Boom and bust in the housing market
 Securitization
 Government policies
 Central bank policies
CONTD…
7

8. Impact of European economic crisis
Increase unemployment
Negative effects on trade balances and balance of
payments.
Growing budget deficits, falling tax revenues and
reduction of fiscal space 8

9. CONTD….
Collapse of housing markets
Massive reversal of private capital flows
Reduced public confidence in financing institutions
9

10. SOLUTIONS
First solution should be given to
economic growth and to reduce
unemployment
Mandatory is the need to restore
Long term Deficit
Debt consideration
10

11. Role of IMF :
•Rethinking macroeconomics principles
•Supporting low-income countries
11
CONTD…

12. SWOT Analysis:
Strength:
Better economic governance
Commitment of financial stability
Banking union
12

13. Weakness :
 Financial aid did not trickle down into society as expected
December 2011: The European central Bank injected a great amount
of liquidity into the financial system to avoid its collapse
13

14. Opportunities:
The stability pact
Banking system
Employees placement
14

15. Threats:
The working population may decrease
Revolution mind of Youth could be damage
The price of oil
15

16. 16

17. Summary:
Today we analyzed,
The Causes of euro zone crisis
The Impact of the crisis on the public opinion
concerning the single currency and the need for
economic reforms
The opportunity to learn from the economic crisis
The price of oil as a threat to the European recuperation
project
Solution of crisis 17

18. 18

19. 19