SlideShare ist ein Scribd-Unternehmen logo
1 von 20
Downloaden Sie, um offline zu lesen
GROUP 6 PRESENTS….
FUTURE OF EURO ZONE
Group 6 Members
• Akshit Singhi 2013003
• Kaushal Jakhelia 2013019
• Netraa Patel 2013024
• Riddhi Solanki 2013032
• Tejas Udeshi 2013051
• Ashutosh Dhanuka 2013061
Introduction
• The Euro Zone is an economic and monetary
union (EMU) of 18 European Union (EU)
member states.
• They have adopted the euro as their sole trading
currency.
• Euro became a reality on Jan 1, 1998 , but came
for the European consumers on Jan 1 2002.
• It consists of Austria, Belgium, Cyprus, Finland,
France, Germany, Greece, Ireland, Italy,
Luxembourg, Malta, the Netherlands, Portugal,
Slovakia, Slovenia and Spain.
Introduction to Euro Zone Crisis
• It is the biggest challenge Europe has faced
since 1990.
• Due to global financial crisis that began in
2007-08 the euro zone entered its first official
recession in third quarter of 2008.
• The official figures were released in Jan 2009.
Beginning of Crisis
• Started in – Oct 2009 in Greece
• Its immediate causes lie with the US crisis of
2007-09.
• The result in Euro Zone was Sovereign debt
crisis.
PIIGS: Portugal, Italy, Ireland, Greece, Spain.
What Happened and Why?
• Greece allowed deficits from Central bank and government
bonds to pile up.
• Greece debt came to light in 2009.
• In 2009 Greece was ranked second lowest on EU’s index of
economic freedom.
• Country suffers from high level corruption.
• Economic growth turned negative in 2009 for the first time
since 1993.
• Large government and External Debts in PIIGS.
6
Greek Debt Crisis
• In the first quarter of 2010, the national debt of Greece was put
at €300 billion ($413.6 billion), which is bigger than the
country's economy.
• Greece has the worst combination of high debt level, large
budget deficit and large external debt.
• Income hit by widespread tax evasion.
• May 2010 – 110bn Euros of bailout loans.
• July 2011 – earmarked to receive another 109bn Euros.
GDP - $360 billion
Debt-GDP ratio – 113% of GDP
Budget Deficit – 12.9% of GDP
Current Account Deficit- 11.0% of GDP
Net Foreign Debt – 70% of GDP
Total Outstanding Public Debt- 290 billion euro
Future of Euro Zone
Greece’s Debt Dynamics
Source: Economist.com
10
Effect on Other Countries
• Contagion Effect:
If Greece is not helped, it could drag down the entire
European Union
Threatening economies: Portugal, Spain and Italy
Greek crisis has made investors nervous about lending
money to governments through buying government
bonds.
11
Situation of other countries
• Spain is experiencing the highest
unemployment rate of 20%.
• Italy- has already taken austerity measures.
The lower house of parliament has voted for
25 billion Euros of cuts to reduce the country’s
deficit. The govt. aims to reduce budget
deficits down from 5.3% of GDP to 2.7% by
2012.
Effect on India
• India’s exports to Europe could witness a
slump close to 10%.
• Export driven sectors such as textiles and
software are likely to bear the brunt.
• About 22-28 percent of revenues of India’s
top tech majors come from Europe whose
revenues will definitely be affected.
• Government’s overall target of $200 billion
for the fiscal could be at stake.
If Greece exits Euro Zone
• People will start withdrawing their Euros out of
the banks.
• Deposits have already fallen from 13% to euro
160 Billion.
• Decline in Standard of Living of Greek citizens.
• Per Capita Income will fall by 55%
• New currency would depreciate by 65% vis a vis
the euro.
• Unemployment would rise.
Greece should not quit the Euro
Zone
• More Competitive in the long run with control
over its monetary and trade policy.
• Greeks interest rates would increase making
business loans very expensive.
• Italy, Spain will also leave.
• An isolated Greece will lack policy and
credibility.
Future Predicted
• Either the euro zone should go for integrating
their economic policies.
OR
• It collapses, and the Greeks and other
profligate countries devalue and the banks
(German, French, British and American) lose
hundreds of billions.
,
PROBLEMS
• It combines efficient and indiscipline
economies.
• Too high debts.
• Political problems.
SOLUTIONS
Countries affected must:
• Grind down Wages
• Raise Productivity
• Slash Spending
• Raise taxes
• Transparent Banking system
• Endure such Austerity Drives for many years
CONCLUSION
• The US crisis led to Global financial crisis,
which further spread to Euro zone and caused
Euro zone crisis, as these countries were most
affected.
• Hence the Big Brothers should help the
countries in problem to come out from the
crisis.
THANK YOU

Weitere ähnliche Inhalte

Was ist angesagt?

Greek government crisis
Greek government crisisGreek government crisis
Greek government crisisNikita Dattani
 
The causes of the debt crisis in Greece
The causes of the debt crisis in GreeceThe causes of the debt crisis in Greece
The causes of the debt crisis in GreeceAlexanderKorvin
 
What Is The Greece Crisis All About
What Is The Greece Crisis All AboutWhat Is The Greece Crisis All About
What Is The Greece Crisis All AboutTICS
 
Greece Economy Crisis & Impact
Greece Economy Crisis & ImpactGreece Economy Crisis & Impact
Greece Economy Crisis & ImpactVaibhav Koli
 
European Debt Crisis
European Debt CrisisEuropean Debt Crisis
European Debt CrisisCharu Rastogi
 
Eurozone Crisis: Policy Responses and Solutions
Eurozone Crisis: Policy Responses and SolutionsEurozone Crisis: Policy Responses and Solutions
Eurozone Crisis: Policy Responses and SolutionsLalith Samarakoon
 
Euro debt crisis
Euro debt crisisEuro debt crisis
Euro debt crisisPVAbhi
 
Eurozone debt crises
Eurozone debt crisesEurozone debt crises
Eurozone debt crisesWordpandit
 
Greece Crisis & It's Impact On European Countries
Greece Crisis & It's Impact On European Countries Greece Crisis & It's Impact On European Countries
Greece Crisis & It's Impact On European Countries Chandra Sri Grandhi
 
Quick View On The Greek Crisis
Quick View On The Greek CrisisQuick View On The Greek Crisis
Quick View On The Greek CrisisMohamed Atef
 
Greek crisis & its impact on world economy
Greek crisis  & its impact on world economyGreek crisis  & its impact on world economy
Greek crisis & its impact on world economyTanmoy Roy
 
Eurozone Presentation
Eurozone PresentationEurozone Presentation
Eurozone PresentationDanielle Jack
 
European Sovereign Debt Crisis
European Sovereign Debt CrisisEuropean Sovereign Debt Crisis
European Sovereign Debt CrisisLakshman Singh
 
Eurozone debt crisis
Eurozone debt crisisEurozone debt crisis
Eurozone debt crisistomarricha
 
Eurozone Crisis : A case study on Greece
Eurozone Crisis : A case study on GreeceEurozone Crisis : A case study on Greece
Eurozone Crisis : A case study on GreeceAniket Pant
 

Was ist angesagt? (20)

Greek government crisis
Greek government crisisGreek government crisis
Greek government crisis
 
The causes of the debt crisis in Greece
The causes of the debt crisis in GreeceThe causes of the debt crisis in Greece
The causes of the debt crisis in Greece
 
What Is The Greece Crisis All About
What Is The Greece Crisis All AboutWhat Is The Greece Crisis All About
What Is The Greece Crisis All About
 
Greece Economy Crisis & Impact
Greece Economy Crisis & ImpactGreece Economy Crisis & Impact
Greece Economy Crisis & Impact
 
Eurozone crisis
Eurozone crisis Eurozone crisis
Eurozone crisis
 
European Debt Crisis
European Debt CrisisEuropean Debt Crisis
European Debt Crisis
 
Eurozone Crisis: Policy Responses and Solutions
Eurozone Crisis: Policy Responses and SolutionsEurozone Crisis: Policy Responses and Solutions
Eurozone Crisis: Policy Responses and Solutions
 
Euro debt crisis
Euro debt crisisEuro debt crisis
Euro debt crisis
 
Eurozone debt crises
Eurozone debt crisesEurozone debt crises
Eurozone debt crises
 
Greece Crisis
Greece CrisisGreece Crisis
Greece Crisis
 
Euro Crisis
Euro CrisisEuro Crisis
Euro Crisis
 
Greece Crisis & It's Impact On European Countries
Greece Crisis & It's Impact On European Countries Greece Crisis & It's Impact On European Countries
Greece Crisis & It's Impact On European Countries
 
Quick View On The Greek Crisis
Quick View On The Greek CrisisQuick View On The Greek Crisis
Quick View On The Greek Crisis
 
Greek crisis & its impact on world economy
Greek crisis  & its impact on world economyGreek crisis  & its impact on world economy
Greek crisis & its impact on world economy
 
Euro crisis
Euro crisis Euro crisis
Euro crisis
 
Eurozone Presentation
Eurozone PresentationEurozone Presentation
Eurozone Presentation
 
European Sovereign Debt Crisis
European Sovereign Debt CrisisEuropean Sovereign Debt Crisis
European Sovereign Debt Crisis
 
Euro Zone Crisis
 Euro Zone Crisis Euro Zone Crisis
Euro Zone Crisis
 
Eurozone debt crisis
Eurozone debt crisisEurozone debt crisis
Eurozone debt crisis
 
Eurozone Crisis : A case study on Greece
Eurozone Crisis : A case study on GreeceEurozone Crisis : A case study on Greece
Eurozone Crisis : A case study on Greece
 

Andere mochten auch

The future of the Euro after the Great Recession by Javier Andrés and Rafel D...
The future of the Euro after the Great Recession by Javier Andrés and Rafel D...The future of the Euro after the Great Recession by Javier Andrés and Rafel D...
The future of the Euro after the Great Recession by Javier Andrés and Rafel D...Círculo de Empresarios
 
The Future of the Euro (Brown book 2012)
The Future of the Euro (Brown book 2012)The Future of the Euro (Brown book 2012)
The Future of the Euro (Brown book 2012)Círculo de Empresarios
 
Orange County Business History
Orange County Business HistoryOrange County Business History
Orange County Business Historyhmunoz1986
 
Euro Performance
Euro PerformanceEuro Performance
Euro Performancezenbudd
 
Economic consequences of brexit OECD April 2016
Economic consequences of brexit OECD April 2016Economic consequences of brexit OECD April 2016
Economic consequences of brexit OECD April 2016OECD, Economics Department
 

Andere mochten auch (6)

The future of the Euro after the Great Recession by Javier Andrés and Rafel D...
The future of the Euro after the Great Recession by Javier Andrés and Rafel D...The future of the Euro after the Great Recession by Javier Andrés and Rafel D...
The future of the Euro after the Great Recession by Javier Andrés and Rafel D...
 
The Future of the Euro (Brown book 2012)
The Future of the Euro (Brown book 2012)The Future of the Euro (Brown book 2012)
The Future of the Euro (Brown book 2012)
 
Orange County Business History
Orange County Business HistoryOrange County Business History
Orange County Business History
 
Euro Performance
Euro PerformanceEuro Performance
Euro Performance
 
Dollar vs rupee PPT
Dollar vs rupee PPTDollar vs rupee PPT
Dollar vs rupee PPT
 
Economic consequences of brexit OECD April 2016
Economic consequences of brexit OECD April 2016Economic consequences of brexit OECD April 2016
Economic consequences of brexit OECD April 2016
 

Ähnlich wie Future of Euro Zone

Ähnlich wie Future of Euro Zone (20)

euro crisis
euro crisiseuro crisis
euro crisis
 
euro crisis
euro crisiseuro crisis
euro crisis
 
Greek Crisis
Greek CrisisGreek Crisis
Greek Crisis
 
Euro crisis
Euro crisisEuro crisis
Euro crisis
 
Euro Sovereign Debt Crisis
Euro Sovereign Debt CrisisEuro Sovereign Debt Crisis
Euro Sovereign Debt Crisis
 
USA Crisis & Euro Crisis
USA Crisis & Euro CrisisUSA Crisis & Euro Crisis
USA Crisis & Euro Crisis
 
Europian debt crisis
Europian debt crisisEuropian debt crisis
Europian debt crisis
 
Euro zone crisis
Euro zone crisisEuro zone crisis
Euro zone crisis
 
Topic 5
Topic 5Topic 5
Topic 5
 
Project on Greece Crisis and Impact for Economic Environment of Business
Project on Greece Crisis and Impact for  Economic Environment of Business Project on Greece Crisis and Impact for  Economic Environment of Business
Project on Greece Crisis and Impact for Economic Environment of Business
 
Euro zone crisis
Euro zone crisisEuro zone crisis
Euro zone crisis
 
European union
European unionEuropean union
European union
 
Greece and the European Union
Greece and the European UnionGreece and the European Union
Greece and the European Union
 
Greece Economy
Greece Economy Greece Economy
Greece Economy
 
Greece crisis and its impact on indian economy
Greece crisis and its impact on indian economyGreece crisis and its impact on indian economy
Greece crisis and its impact on indian economy
 
The history of EU and its current situation.
The history of EU and its current situation.The history of EU and its current situation.
The history of EU and its current situation.
 
The history of EU and its current situation.
The history of EU and its current situation.The history of EU and its current situation.
The history of EU and its current situation.
 
Eurozone Crisis Essay
Eurozone Crisis EssayEurozone Crisis Essay
Eurozone Crisis Essay
 
The Eurozone Debt Crisis
The Eurozone Debt CrisisThe Eurozone Debt Crisis
The Eurozone Debt Crisis
 
Eurozone crisis
Eurozone crisisEurozone crisis
Eurozone crisis
 

Kürzlich hochgeladen

Zero-day Vulnerabilities
Zero-day VulnerabilitiesZero-day Vulnerabilities
Zero-day Vulnerabilitiesalihassaah1994
 
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdfIntroduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdfShreedeep Rayamajhi
 
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024Jan Löffler
 
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSLESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSlesteraporado16
 
Computer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteComputer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteMavein
 
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...APNIC
 
Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Shubham Pant
 
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfLESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfmchristianalwyn
 
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsVision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsRoxana Stingu
 
Presentation2.pptx - JoyPress Wordpress
Presentation2.pptx -  JoyPress WordpressPresentation2.pptx -  JoyPress Wordpress
Presentation2.pptx - JoyPress Wordpressssuser166378
 
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSTYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSedrianrheine
 
Bio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxBio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxnaveenithkrishnan
 

Kürzlich hochgeladen (12)

Zero-day Vulnerabilities
Zero-day VulnerabilitiesZero-day Vulnerabilities
Zero-day Vulnerabilities
 
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdfIntroduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
 
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
 
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSLESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
 
Computer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteComputer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a Website
 
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
 
Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024
 
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfLESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
 
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsVision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
 
Presentation2.pptx - JoyPress Wordpress
Presentation2.pptx -  JoyPress WordpressPresentation2.pptx -  JoyPress Wordpress
Presentation2.pptx - JoyPress Wordpress
 
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSTYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
 
Bio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxBio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptx
 

Future of Euro Zone

  • 2. Group 6 Members • Akshit Singhi 2013003 • Kaushal Jakhelia 2013019 • Netraa Patel 2013024 • Riddhi Solanki 2013032 • Tejas Udeshi 2013051 • Ashutosh Dhanuka 2013061
  • 3. Introduction • The Euro Zone is an economic and monetary union (EMU) of 18 European Union (EU) member states. • They have adopted the euro as their sole trading currency. • Euro became a reality on Jan 1, 1998 , but came for the European consumers on Jan 1 2002. • It consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
  • 4. Introduction to Euro Zone Crisis • It is the biggest challenge Europe has faced since 1990. • Due to global financial crisis that began in 2007-08 the euro zone entered its first official recession in third quarter of 2008. • The official figures were released in Jan 2009.
  • 5. Beginning of Crisis • Started in – Oct 2009 in Greece • Its immediate causes lie with the US crisis of 2007-09. • The result in Euro Zone was Sovereign debt crisis. PIIGS: Portugal, Italy, Ireland, Greece, Spain.
  • 6. What Happened and Why? • Greece allowed deficits from Central bank and government bonds to pile up. • Greece debt came to light in 2009. • In 2009 Greece was ranked second lowest on EU’s index of economic freedom. • Country suffers from high level corruption. • Economic growth turned negative in 2009 for the first time since 1993. • Large government and External Debts in PIIGS. 6
  • 7. Greek Debt Crisis • In the first quarter of 2010, the national debt of Greece was put at €300 billion ($413.6 billion), which is bigger than the country's economy. • Greece has the worst combination of high debt level, large budget deficit and large external debt. • Income hit by widespread tax evasion. • May 2010 – 110bn Euros of bailout loans. • July 2011 – earmarked to receive another 109bn Euros.
  • 8. GDP - $360 billion Debt-GDP ratio – 113% of GDP Budget Deficit – 12.9% of GDP Current Account Deficit- 11.0% of GDP Net Foreign Debt – 70% of GDP Total Outstanding Public Debt- 290 billion euro
  • 11. Effect on Other Countries • Contagion Effect: If Greece is not helped, it could drag down the entire European Union Threatening economies: Portugal, Spain and Italy Greek crisis has made investors nervous about lending money to governments through buying government bonds. 11
  • 12. Situation of other countries • Spain is experiencing the highest unemployment rate of 20%. • Italy- has already taken austerity measures. The lower house of parliament has voted for 25 billion Euros of cuts to reduce the country’s deficit. The govt. aims to reduce budget deficits down from 5.3% of GDP to 2.7% by 2012.
  • 13. Effect on India • India’s exports to Europe could witness a slump close to 10%. • Export driven sectors such as textiles and software are likely to bear the brunt. • About 22-28 percent of revenues of India’s top tech majors come from Europe whose revenues will definitely be affected. • Government’s overall target of $200 billion for the fiscal could be at stake.
  • 14. If Greece exits Euro Zone • People will start withdrawing their Euros out of the banks. • Deposits have already fallen from 13% to euro 160 Billion. • Decline in Standard of Living of Greek citizens. • Per Capita Income will fall by 55% • New currency would depreciate by 65% vis a vis the euro. • Unemployment would rise.
  • 15. Greece should not quit the Euro Zone • More Competitive in the long run with control over its monetary and trade policy. • Greeks interest rates would increase making business loans very expensive. • Italy, Spain will also leave. • An isolated Greece will lack policy and credibility.
  • 16. Future Predicted • Either the euro zone should go for integrating their economic policies. OR • It collapses, and the Greeks and other profligate countries devalue and the banks (German, French, British and American) lose hundreds of billions. ,
  • 17. PROBLEMS • It combines efficient and indiscipline economies. • Too high debts. • Political problems.
  • 18. SOLUTIONS Countries affected must: • Grind down Wages • Raise Productivity • Slash Spending • Raise taxes • Transparent Banking system • Endure such Austerity Drives for many years
  • 19. CONCLUSION • The US crisis led to Global financial crisis, which further spread to Euro zone and caused Euro zone crisis, as these countries were most affected. • Hence the Big Brothers should help the countries in problem to come out from the crisis.