European debt crisis欧洲债务危机英文PPT

EuropeandebtcrisisOutline•definition•evolution•causes•effects•solutionsDefinition•TheEuropeandebtcrisisisamulti-yeardebtcrisisthathasbeentakingplaceintheEuropeanUnionsincetheendof2009.Thephenomenonofthecrisis•Severaleurozonememberstates(Greece,Portugal,Ireland,SpainandCyprus)wereunabletorepayorrefinancetheirgovernmentdebtortobailoutover-indebtedbanksundertheirnationalsupervisionwithouttheassistanceofthirdpartieslikeotherEurozonecountries,theEuropeanCentralBank(ECB),ortheInternationalMonetaryFund(IMF).evolutionstartdevelopingspreadupgradeStart•Thewotld'sthreemajorratingcompaniesdowngradedGreece'ssovereignrating,thenthedebtcrisisintensifiedinGreece•December2009thethreelargestcreditratingcompaniesdowngradedGreece'ssovereignrating.•December8,2009FitchcreditratingofGreeceloweredfrom“A-”to”BBB+”•December15,2009theGreekgovernmentbondssold2billioneuros.•December16,2009.Standard&Poor'sdowngradedGreece'slong-termcreditratingfrom“A-”to”BBB+”.•December22,2009,Moody'sannouncedthatitwouldcutGreece'ssovereignratingfromA1toA2,outlooknegative.Developing•Belgium,Spain,otherEuropeancountriesbegantofallintocrisisandcrisisinGreecehasbeentheprotagonist•January11,2010,Moody'swarnedPortugalfaliuretotakeeffectivemeasurestocontrolthedeficit.Itwillcutthenationaldebtcreditrating.•Febuary4,2010,theSpanishMinistryofFinancepointedoutthatSpainin2010wouldaccountforfearoftheoverallpublicbudgetdeficitof9.8%ofGDP.•Apirl,2010,StandardandPoor'scutGreece'sdebtcreditingtothegarbagelevelSpread•Germanyandotherleadingeuro-zonecountrieshadbeguntofeeltheimpactofthecrisis,theeurowasfacingthemostseveretestsincetheestablishment•Germanyandotherleadingeuro-zonecountrieshavebeguntofeeltheimpactofthecrisis,theeurofellsharply,withEuropeanstockmarketsintoanosedive.Theeuroareawasfacingthemostseveretest,somecriticsspeculatedthattheeurozonewilleventuallybemoredisintegrationoftheend.Upgrade•EUfinanceministersreachedatotalofupto750billioneurosofstabilizationmechanismtopreventthecrisisfromspreading•April,2010GreeceformallyappliedtotheEUandIMFassistance.•May3,2010Germancabinetapproved22.4billioneurosaidplan.•10MaytheEUapproved750billioneurosGreekaidprogram,IMFmayprovide250billioneurostoaidGreece.CausesAnalysis•1、EuroZonePolicySystem•2、LargeBudgetDeficit•3、2008GlobalFinancialCrisisEuroZonePolicySystem•InstitutionaldefectofEuroZone•a)thedualityoffiscalandmonetarypolicy•b)thelayerofdecision-makingmechanism•HugeGapinEuroZone•Hugegapinregardtothevolumeoftheeconomyexistbetweenlargecountriesandsmallcoumtries,suchasexchangerateandinterestrate•UndesirableRegulationofEuroZone•-HidingRealDebtAmount•-RegulationofgovernmrntspendingLargeBudgetDeficit•Over-usingdebtfinancingfordevelopmentofeconomicsandkeepinghigh2008GlobalFinancialCrisis•Attackedby2008globalfinancialcrisis,Europeaneconomicswastrappedinatrriyblesituationandithadn'trevoveryfromituntilEuropeandebtcrisishappenedeffectseconomicspoliticsEconomiceffects•1、Affectthestabilityoftheeurocurrency•FacedwithcountriessuchasGreece'ssovereigndebtprobiems,theeuroexchangeratefromDecember,2009allthewaydowntoApirl27,2010.IfitcannoteffecyivelysoivesoivethedebtprobiemsofcountriessuchasGreece,itwillbedifficulttorestoremarketconfidence,thenitwouldsuppresstheeuroexchangerate.2、Dragoneuroareaeconomicdevelopment•Greece,Spain,Portugalandothercountriestakingradicalausteritymightmaketheeconomicbackintorecession.AccordingtotheIMFforecast,in2010,thefourcountriesrealGDPgrowthratewere-2%,-0.4%,-1.5%and0.3%.OnApirl27,28,aseriesoflowerGreece,Spain,Portugal'ssovereigncreditratingwasfuelingapanic3、Toextendthetimeforeuromoetarypolicyeasing•Asthesinglecurrentarea,economicimbalanceswithineuroexistanditisaobatacletotheeuroeconomicrevocery.SotherelaxedmoneypolicyintheimplementofexitstrategyisdifficulttodetermineasuitabletimetableforallmembersoftheEuropeanCentralBank4、Stabilitypositionoftheeuroandtheeuro-zonewillbetested•Sinceitlaunchedtheeuro,withstrongeconomicstrenth,ithasquicklybecomethelargestcurrencyafterAmerica.Butthedebtproblemshasinflunceditsstatusworldwide.Ifnotsolvedeffectively,itcanwakenthewholeeuroandmakethemarketofeuroinfluenced.Sotheeuro-zonewillbetested.5、Threattoglobaleconomicandfinanicalstability•Sinceeuroareaisalargeareatoimport,soEuropeandebtcrisismakethecyrrencyofeurodevaluedangdithasabadimportantonothercountries'export.Besides,becausethecountriesarelinkedtogether,soitiseasytomakeothercountrieseconomicandfinanicalsystemunstable.Politicseffects•Ireland–February2011–Afterahighdeficitinthegovernment'sbudgetin2010andtheuncertaintysurroundingtheproposedbailoutfromtheInternationalMonetaryFund,the30thDáil(parliament)collapsedthefollowingyear,whichledtoasubsequentgeneralelection.•Portugal–March2011–Followingthefailureofparliamenttoadoptthegovernmentausteritymeasures,PMJoséSócratesandhisgovernmentresigned,bringingaboutearlyelectionsinJune2011.•Spain–July2011–FollowingthefailureoftheSpanishgovernmenttohandletheeconomicsituation,PMJoséLuisRodríguezZapateroannouncedearlyelectionsinNovember.•Italy–November2011–Followingmarketpressureongovernmentbondpric