Eurozone crisis effect on global economy. Abstract
To repay or refinance government debt became an arduous task for
some of the Euro zone countries because of Euro crisis. The banks
in Euro zone economies are undercapitalized and suffered liquidity
crunch problems. The focus of this paper is on the genesis of the
euro debt crisis and simultaneously analyses the impact of the
crisis on European and global economy. It highlights the fact that
the crisis in the Euro zone is the resultant of overspending and
minimal control by respective central banks. The measures initiated
by these economies are inadequate. The affected Euro zone
economies, on priority, must tighten their austerity measures and
raise their income. The paper concludes that outside help may not
bail them out; they should take stringent and unpopular decisions
to curtail spending and, thereby, raise income that may bail them
out. These decisions certainly need cooperation from public and
political support.
