The Eurozone’s biggest-ever crisis

Maarten Thomas

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1. The problem2. The problem countries3. The cutbacks4. The European solutions5. Conclusion

Index

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Economic recession

Growing government deficit & national debt

Financial problems Greece

Lower appreciation Euro

The problem

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Portugal

Italy

Ireland

Greece

Spain

The problem countries

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Necessary to repair confidence

European supervision required

Critical point:

They hit the ordinary citizen Could slow down economic recovery Businesses get less government tasks Decreasing purchasing power

The cutbacks

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The European Stability & Growth Pact

Maximum government deficit

The European Financial Stability Facility Temporary need fund permanent need fund

Plan Merkel & Sarkozy Tighten up supervision Punishing

The European solutions

New measurements

Part of Greeks debt acquitted Need fund needs to grow Supervison of the government finances will be

tightened up Banks must keep more money in cash

The European solutions

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Outlook is gloomy

Last wake-up call

Determined action is needed

Conclusion