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A complete presentation about the recent crisis that became a nightmare of most of the Europeans. The presentation will take you through some statistics about Europe as well as the reasons behind the crisis. By going through this presentation, you will be able to understand the remedial actions taken by European Union as well as the national governments of the countries which dominate the whole Europe. We hope that the presentation will be helpful to business men around the world, managers as well as management students globally. Go through the presentation but don't forget to hit like. Hypup hopes that everyone will share this presentation in SlideShare as well as i their social media accounts
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EuropeanCrisis
Comp i l ed By ;
Chamkaur S ignh
Manoj Kumar
Crisis
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Area_10,180,000KM2 (3,930,000sq mi) Population_739,,165,030 (2011, 3
rd)
Pop density_72.5 km2 (about 134/sq mi) Demonism_European
Europe
Demonism_European Countries_50 (and 6 disputed) Time Zones_UTC to UTC+6 Internet TLD_.eu (European union)
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Economy
An economy consist of production, distribution or trade and consumption of limited goods and services by different agents in an given location.
Agents can be individual, business, organisation or Agents can be individual, business, organisation or government.
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Crisis
Situation in which economy of country sudden downturn brought by financial crises.
Mostly main effect see on downfall in GDP.
Dying up of liquidity. Dying up of liquidity.
Rising/falling prices due to inflation/deflation.
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European Crisis
It starts in the year 2009 majorly effect in 2010.
European commission released a data 1.8% decline in EU economic output.
This was a combined government, banking and This was a combined government, banking and growth and competitiveness crises.
Some countries in euro zone face difficulty in repay or refinance their government debts.
If they are paying but they paying without assistance of IMF.
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European Crisis
Banks become undercapitalized.
Also face liquidity and debt problem.
Economic growth was slow in all euro zone.
Also unequally distributed across the members of
Continued
Also unequally distributed across the members of euro zone.
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Reasons
Violation of EU rules: Greece and Cyprus did not give real data about the financial and economic situations which results in high budget deficit and debt levels.
Banking sector problem: After world financial crises Banking sector problem: After world financial crises 2007 euro banks got collapsed. Because they become financial weak and their financial flow got collapsed dramatically. Their money was used to cover government budget deficits rather than providing lending to business and household.
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Reasons
Rating agencies: In the beginning of debt crises rating agencies downgrade the euro zone. It results financial institutes loose their confidence and Europe face problem in rising finance.
Continued
problem in rising finance.
Political conflicts: As the Germany refuse the proposal of increase in taxes and some other rich nations also. So it was contradictory to other nations of euro zone. One more factor is unstable ruling party in Greece and Italy because there elections were near.
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Reasons
Slow and indecisive actions from European officials: as the debt crises started in Greece then delay in corrective action it spread to other countries also.
17 members of Euro zone had different policies to
Continued
17 members of Euro zone had different policies to handle the crises. EU did not give any proper step and guild lines before it became huge one.
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Recovery
Increase in taxes.
Countries of euro zone coordinating with EU for undertaking adjustments to national budgets.
They make different financial policies for banks They make different financial policies for banks concentrating more on public finance.
European central bank (ECB) take charge of all the operations and give new guidelines.
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Recovery
They concentrate more on new investments.
All the nation and European investment bank(ECB) decide to invest 180 billion euro till 2020.
More stable political environment provide space for
Continued
More stable political environment provide space for new deals to outer world.
Crises is not over yet but Euro zone doing well so it may be ended in near future.
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Impact on India
High impact on exports.
FII’s suddenly start withdrawing and results in high volatility.
Inflation take place in India. Inflation take place in India.
India have big business with Europe which gets directly effected.
Sectors auto, oil and gas, metal, FMCG and healthcare take a beating.
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Impact on India
IMF and World bank more concern about Europe so rest of world have financial problem to some extent including India.
Investors start finding ways to minimise their
Continued
Investors start finding ways to minimise their investments and risks which causes fluctuation in investment patterns and forecasts.
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