European debt crisis欧洲债务危机英文PPT

• December 2009 the three largest credit rating companies downgraded Greece's sovereign rating. • December 8,2009 Fitch credit rating of Greece lowered from “A-”to”BBB+” • December15,2009 the Greek government bonds sold 2 billion euros. • December 16,2009.Standard &Poor's downgraded Greece's long-term credit rating from “A-”to”BBB+”. • December22,2009,Moody's announced that it would cut Greece's sovereign rating from A1 to A2,outlook negative.
Large Budget Deficit
• Over -using debt financing for development of economics and keeping high
2008 Global Financial Crisis
• Attacked by 2008 global financial crisis,European economics was trapped in a trriyble situation and it hadn't revovery from it until European debt crisis happened
evolution
start
developi ng
spread
upgrade
Start
• The wotld's three major rating companies downgraded Greece's sovereign rating, then the debt crisis intensified in Greece
Upgrade
• EU finance ministers reached a total of up to 750 billion euros of stabilization mechanism to prevent the crisis from spreading
• April,2010 Greece formally applied to the EU and IMF assistance. • May 3,2010 German cabinet approved 22.4billion euros aid plan. • 10 May the EU approved 750 billion euros Greek aid program,IMF may provide 250 billion euros to aid Greece.
The phenomenon of the crisis
• Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other Eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).
Causes Analysis
• 1、Euro Zone Policy System • 2、Large Budget Deficit • 3、2008 Global Financial Crisis
Euro Zone Policy System
• • • • • Institutional defect of Euro Zone a) the duality of fiscal and monetary policy b) the layer of decision-making mechanism Huge Gap in Euro Zone Huge gap in regard to the volume of the economy exist between large countries and small coumtries,such as exchange rate and interest rate • Undesirable Regulation of Euro Zone • -Hiding Real Debt Amount • -Regulation of governmrnt spending
Developing
• Belgium,Spain,other European countries began to fall into crisis and crisis in Greece has been the protagonist
• January11,2010,Moody's warned Portugal faliure to take effective measures to control the deficit.It will cut the national debt credit rating. • Febuary4,2010,the Spanish Ministry of Finance pointed out that Spain in 2010 would account for fear of the overall public budget deficit of 9.8% of GDP. • Apirl ,2010,Standard and Poor's cut Greece's debt crediting to the garbage level
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3、To extend the time for euro moetary policy easing
• As the single current area,economic imbalances within euro exist and it is a obatacle to the euro economic revocery.So the relaxed money policy in the implement of exit strategy is difficult to determine a suitable timetable for all members of the European Central Bank
4、Stability position of the euro and the eurozone will be tested
• Since it launched the euro,with strong economic strenth,it has quickly become the largest currency after America.But the debt problems has influnced its status worldwide.If not solved effectively,it can waken the whole euro and make the market of euro influenced.So the eurozone will be tested.
Spread
• Germany and other leading euro-zone countries had begun to feel the impact of the crisis,the euro was facing the most severe test since the establishment
European debt crisis
Outline
• definition • evolution • causes • effects • solutions
Definition
• The European debt crisis is a multi-year debt crisis that has been taking place in the European Union since the end of 2009.
• Germany and other leading eurozone countries have begun to feel the impact of the crisis,the euro fell sharply,with European stockmarkets into a nosedive.The euro area was facing the most severe test,some critics speculated that the euro zone will eventually be more disintegration of the end.
5、Threat to global economic and finanical stability
• Since euro area is a large area to import,so European debt crisis make the cyrrency of euro devalued angd it has a bad important on other countries' export.Besides,because the countries are linked together,so it is easy to make other countries economic and finanical system unstable.
2、Drag on euro area economic development
• Greece,Spain,Portugal and other countries taking radical austerity might make the economic back into recession.According to the IMF forecast ,in 2010,the four countries real GDP growth rate were -2%,0.4%,-1.5% and 0.3%.On Apirl 27,28,a series of lower Greece,Spain,Portugal's sovereign credit rating was fueling a panic
economics
effect s
politics
Economic effects
• 1、Affect the stability of the euro currency • Faced with countries such as Greece's sovereign debt probiems,the euro exchange rate from December,2009 all the way down to Apirl 27,2010.If it can not effecyively soive soive the debt probiems of countries such as Greece,it will be difficult to restore market confidence,then it would suppress the euro exchange rate.