European sovereign debt crisis also know as the Greek crisis

1. “The Greek crisis”
Kim Blervacq

2. Introduction
 The Greek crisis
 The current solution
 Influence on the banking system
 Moral issues
 My conclusion

3. The Greek crisis
 European sovereign
debt crisis
 Influence of the US
 Why Greece?
 User of the Euro
 Abuse of rules
 Wrong solutions

4. The current solution
 Bail-out loans of €252bn
 Could rise to €444bn
 “Haircuts” on Greek bonds
 Holdings take close to 60% loss
 IMF and ECB dont agree
 Increase the firepower of Rescue fund
 Proposition of Eurozone leaders
 Disagreement France & Germany
 Push for a more balanced world economy

5. The current solution
 The Greek privatisation programme
 Privatization of public enterprises
 Expected to collect €66bn
 Will be €20bn less
 No clear solution
 A lot of suggestions but no clear agreement

6. Influence on banking
system
 4 key weaknesses
 Fragility of funding across the eurozone
○ Squeezing profit margens  uneconomic
 Business models
○ Bad structures
 Balance sheet problems
 Capital weaknes
○ New test of capital strenght
○ Mass recapialisation

7. Moral issues
 Other problems
 Not only money, moral issues
 Attitude, pessimism and fear
 We must stay optimistic
 David Cameron
 “We must counsel against the pessimism
and fear that can become self-fulfilling
prophecies”

8. Moral issues
 Why should we stay optimistic?
 Good universities in England and Europe
○ Have faith
 Opportunities, not threats!
 Use this situation to learn from it

9. My conclusion
 Enough solutions
 Have to be improved
 Stay optimistic
 Faith in Eurozone leaders and the
economy

10. Thank you for listening