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International Economy
Session 3: The Crisis of the Euro




                    Niki Papadopoulou
                    Fall 2012
A little note…
International Economy:
The Economic and Political Crisis of the European Union
                Presentation by Students
               The Greek sovereign crisis
      Who, what, when, how and why of the EU crisis
                 Germany vs. the others
International Economy:
The Economic and Political Crisis of the European Union
               Presentation by Students
             The Greek sovereign crisis
    Who, what, when, how and why of the EU crisis
                Germany vs. the others
The Headlines
The Headlines
The Headlines

PMI: Purchasing
Managers Index:
Key Economic
Indicator made-up
of five sub-
indexes:
-Production level
- New orders
- Supplier
deliveries
- Inventories
- Employment
level
The Headlines
The Headlines
The Headlines
The Headlines
The Headlines
The Headlines
It says it all….
It says it all….
It says it all….
Speculation
Contagion!!!
Contagion!!!
Getting weaker…
The influence of markets…
Before and after the EU




Greece, 1980       Greece, 2012
Before and after the EU
The privileges of the few
How does a country go
     into debt?
   Too much of this:




  Not enough of that:
Plus things were not what
   they seemed to be…
Plus things were not what
   they seemed to be…
Where does it all go?
Where does it all go?
But it’s not over…
Not only a
Greek problem:
Who
Who
Who
Who
Who
Who
Who
Who
What
What’s the cost?
What’s the cost?
Where
Where
How
How
How?
How (did it get this bad)?




What Greeks were doing the last 10 years
(according to the Germans)
How (did it get this bad?)
•  Greece was treated as a Northern European borrower while it did
not and had never acted like one.
• Slow reaction to the Greek crisis and conflicting views between the
leading countries of the Eurozone (France and Germany) led to
speculation, prolonging the crisis and leading to a serious lack of
confidence in the euro itself.
•  The cost of the Greek bailout multiplied each day that Germany and
the other EU countries could not agree on what to do--as investors
lost confidence the price of the bailout increased.
•  Germany’s defenders say that Greece would never agreed to such
an austerity package had it not been for the stress of a potential
economic apocalypse.
How (did it get this bad)?

But…
Why (the beginning of an
        answer)
             Le 3 janvier 1996, l'Etat
             grec confiait au
             consortium franco-
             hellénique Gefyra S.A.
             une concession de 42 ans
             pour la conception, la
             construction, l'exploitation
             et l'entretien du pont
             Harilaos Trikoupis. L'UE
             apportera un appui
             financier important –
             subvention du FEDER,
             prêt de la Banque
             européenne
             d'investissement (BEI) – à
             cet ambitieux chantier.
Even Historical Figures
     are Upset…

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