2. A glance at the roots of the crisis
From 2001 to 2006 the United States fed a huge economic
bubble based on a careless investment policy that
exploded in 2008.
From that time on this crisis expanded all over the world
and reached even the euro-zone.
Up to now all the efforts made to contain the
consequences do not seem to work.
3. “It’s important this country is at
the forefront of fighting the crisis
in Europe, being strict for
southern Europe but willing to
help if they do what’s
needed.”
Mark Rutte
“Not spending more than you
collect, it’s astonishing that this
simple fact leads to such
debates.”
Angela Merkel“If the euro fails, then Europe fails.”
Mario Monti
“Developments this summer have
indicated we are in a dangerous
new phase.”
Cristhine Legarde
“We want European
cooperation. We don’t
want to be in euro.”
David Cameron
4. The crisis map 2011-2012
Euro-zone debt
heats up and
fears grow that
the euro-zone
will break apart.
Assurances from
Germany calm
down world
markets.
Markets fall fearing
transatlantic
banking
contagion; the ECB
quiets markets
depositing 1.4
trillion into the
banking system.
Incomes in rich
countries
become flat,
European
unemployment
rises the China
estimates of
growth.
No solutions for
Europe unless
Germany
underwrites
euro-zone debt,
so that world
markets recoil.
Inverstors pull
back from risks.
5. “We believe it is behind,
but we are not yet over
the crisis.”
Mario Draghi
President of the European Central Bank
We were fully confident that there was political will
of European States and leaders to overcome the
crisis. It is true that it is an unprecedented crisis but it
is also true that there is a strong will to do everything
necessary to sustain the currency. We have to find
solutions, and certainly it is a good decision to do
everything possible to avoid a disorderly default.
6. The governement can’t pay the bills;
social discontent explodes
The country exits from the euro zone
Euro-zone banks holding this debt
are hard hit
Credit crunch, has slowed
European growth; unemployment
rises, borrowing costs skyrocket
Money flows out of other weak
European economies; countries
can’t find financing and default or
pull out the euro
Market unrest; a collapse of
economic growth around Europe
leads to a global recession
Euro-zone banks holding a bad nation debt
suffer, but the EU and strong countries like
Germany help to recapitalize banks.
Stability is restored to the financial system
Funds not spent on it are used to support
other at-risk countries
Germany leads the euro zone towards a
greater fiscal unity
The financial market stabilize; Europe returns
to normal growth
The world avoids a serious recession
Worst possible scenario Best possible scenario
In case of a European country default
7. “The two strongest nations in
the euro-zone (Germany
and France) don’t yet have
the stomach to save the
common currency. The ECB
doesn’t have the firepower
to stem the crisis.”
“While the euro enjoys
widespread support,
spending more money to
save it doesn’t. Residents of
rich countries like Germany
resent seeing their hard-
earned cash diverted to
rescue other states.”
From the “TIME”…
9. “Iceland, for example, in
2010 nationalised all its
private banks, through a
popular referendum.”
BANK DEPRIVATIZATION
Currency issue cannot be
handled by private banks
(ECB, FED). A supranational
organism should control
the issue to prevent
conflicts of interest
between private investors.
10. NEW REGULATIONS
New laws and rules are necessary
• to control the actions of the bank, for a better
administartion of markets and international
exchanges
• to reduce the free action of the bank about risky
investment,and in particular about
production/acquisition of “toxic titles”
• to regulate the operation of rating agency and
possible private agreement with the banks.
11. NEW GOVERNING CLASS
We need a new governing class disposed to
get involved in the EU rights; people chosen by
population that aren’t prone to self-interest’s
conflict.
12. OUTLAY OPTIMIZATION
We need laws directed to struggle tax evasion and to
optimize the national expences in order to avoid a
worsening of public debt. Cutting the costs of politics
and unnecessary or avoidable expences is a solution
but without hitting Education and Healthcare, basis of
a civilized country.
13. Europe must be more
united and be a real
single state, excluding
every kind of
particularism and
selfishness among
nations.
In the nineteenth
century Giuseppe
Mazzini (an Italian
politician and
patriot), already
foresaw a united
Europe, and his
dream was fulfilled a
century later, thanks
to the EU.
14. Notwithstanding the EU is currently undergoing
grave economic difficulties and considerable
social unrest
the Norwegian Nobel Committee has decided that
the Nobel Peace Prize for 2012 is to be awarded to
the European Union (EU).
The union and its forerunners have for over six
decades contributed to the advancement of
peace and reconciliation, democracy and human
rights in Europe.
The work of the EU represents “Fraternity between
nations”.
15. In the end, the only way to save the euro could be a
new euro-zone to emerge, one in which its
politicians and citizens are more willing to sacrifice
their own interests for the greater community – to
make the dream of a United Europe more than a
dream.
