欧债危机The_European_Debt_Crisis222

nullnullThe European Debt Crisis夏康、孙言安、陈孟琦、吴帮伟ContentsContents DefinitionCausesEffectsSolutionsEuropean debt crisis mainly refers to sovereign debt crisis.The European sovereign debt crisis begins in Greece,and later spread to Italy ，Portugal, and Spain.European debt crisis mainly refers to sovereign debt crisis.The European sovereign debt crisis begins in Greece,and later spread to Italy ，Portugal, and Spain.Greece Italy Ireland Potugal Spain （PIIGS—the five countries above is also called PIIGS, which have the most risky governmental debt ）nullProcess of Debt crisis in EuropeWhat is the European Sovereign Debt Crisis（ ESDC）? What is the European Sovereign Debt Crisis（ ESDC）? A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. It may be accompanied by a formal declaration of a government not to pay , or only partially pay its debts. If potential lenders or bond purchasers begin to suspect that a government may fail to pay back its debt, they may demand a high interest rate in compensation for the risk of default. A dramatic rise in the interest rate faced by a government due to fear that it will fail to honor its debt is sometimes called a sovereign debt crisis. If potential lenders or bond purchasers begin to suspect that a government may fail to pay back its debt, they may demand a high interest rate in compensation for the risk of default. A dramatic rise in the interest rate faced by a government due to fear that it will fail to honor its debt is sometimes called a sovereign debt crisis. What caused the European Sovereign Debt Crisis（ ESDC）?What caused the European Sovereign Debt Crisis（ ESDC）?To be spreaded by Greece Debt Crisis Cause of Greece Debt Crisis Cause of Greece Debt Crisis Tax policy is not reasonable，tax evasion is serious. Financial expenditure is oversize. Government cannot issue currency independently.nullFirst, the sovereign debt problem is actually a continuation of the financial crisis and deepening. Second, the duality of the euro area fiscal and monetary policy has led to sovereign debt problems. Third, the euro-zone countries is caused by internal imbalances the underlying causes of debt problems. Fourth, the EU's external debt crisis, structural contradictions are factors in the system. CausesnullOn the other hand, forced the pressure of political parties and trade unions, Greece and other countries over many years to raise wages and pensions and other social welfare level, with the accelerated aging of the population, not only to the government a huge financial pressure, but also to improve the unit labor costs, so that leading to the accumulation of long government debt and external debt continues to climb. Finally, international speculators speculation accelerated this debt crisis. What are the effects of the European Sovereign Debt Crisis（ ESDC）?What are the effects of the European Sovereign Debt Crisis（ ESDC）?Affect the stability of the euro currency Drag on euro area economic development To extend the time for the euro monetary policy easing Stability position of the euro and the euro zone will be tested Threat to global economic and financial stabilitynullThe euro exchange rate from December 2009 onwards all the way down, to April 27, 2010, the euro-dollar exchange rate closed at its lowest point over the past year, compared with early December 2009 fell by 12.8 %. Affect the stability of the euro currencynullGreece, Spain, Portugal and other countries to take the radical austerity, might make the economy back into recession. According to the latest IMF forecast, in 2010, Greece, Spain, Ireland and Portugal, the four countries real GDP growth rate of -2%, -0.4%, -1.5% and 0.3%, the worst performance in the euro area member countries . Drag on euro area economic developmentnullAs the single currency area, economic imbalances within the euro area monetary policy to the implementation of a uniform manufacturing obstacles, economic recovery in the euro area member states of step with the European Central Bank relaxed monetary policy in the implementation of "exit" strategy is difficult to determine a suitable for all members of the timetable. The euro-zone countries, Greece and other debt problems exposed, dragged down the pace of economic recovery in the euro area, the ECB may also have a longer period of time the benchmark interest rate at historic lows.To extend the time for the euro monetary policy easingnullIMF on April 20 and 21, has released "Global Financial Stability Report" and "World Economic Outlook", the developed countries have expressed concerns about sovereign debt risk. The IMF "World Economic Outlook report," said the short term, the main risk is that if left unchecked, the Greek sovereign debt market liquidity and solvency concerns, may evolve into a fully sovereign debt crisis, and the formation of a kinds of spreading.Threat to global economic and financial stabilityWhat are the solutions of the European Sovereign Debt Crisis?What are the solutions of the European Sovereign Debt Crisis?The Three Pillars: 1. Increasing bank capital 2. Relief Fund:European Financial Stability Facility （EFSF) 3. Greek debt restructuring nullRevolution Now Or NevernullBanks need additional capital, so that it could withstand the loss and subsequent bankruptcy absorbing Greek influence. In contrast, bank capital increase is the easiest one in "three pillars" . France, the European Union and the United States can hope EFSF additional capital in the bank in the process, play a more central and active role. Germany believes that EFSF shouldn't give help until the national government can not provide the necessary support to banks. Restructuring of the Greek debt hinges on Greek government bonds held by creditors appropriate by design, so that Greece's debt sustainability, and economic growth through fiscal restraint and to make up. Thank you ！Thank you ！