By late 2007, the first signs of financial bubble collapse, public debt, its servicing and the notorious spreads were not subject to financial markets. Countries having high or low debts used to borrow at low interest rates and were not subject to special assessment procedures.
1999 was the last time that financial markets caused national economies to default. This was the case of the crisis in Southeast Asia. The crisis, however, was combined with the massive exodus of foreign capital from the financial markets in the region, which inevitably led to devaluation of currencies, suspension of borrowing and collapse of their economies.
The Greek debt crisis is the most serious financial crisis that appeared in a country member of the Eurozone, and it is thought that it will have serious implications on the stability of the Euro. In this paper, the general economic situations of EU and Greece will be examined to check whether the above assumption is possible.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Stability and Growth Pact
- Convergence criteria
- Why are the markets controlling now the national debt?
- Is there a risk for euro?
- Will the Greek economy bankrupt?
- Conclusions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the potential impact of the Greek debt crisis on the stability of the Euro. It examines the general economic situations of the European Union and Greece, focusing on the role of the Stability and Growth Pact, the convergence criteria, and the influence of financial markets on national debt.
- The impact of the Greek debt crisis on the stability of the Euro
- The effectiveness of the Stability and Growth Pact in managing fiscal discipline
- The role of financial markets in controlling national debt
- The economic situations of the European Union and Greece
- The implications of convergence criteria for Eurozone membership
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The paper introduces the Greek debt crisis and its potential implications for the stability of the Euro, highlighting the historical context of financial crises and the unique challenges posed by this situation.
- Stability and Growth Pact: This section delves into the Stability and Growth Pact (SGP), its objectives, and its implementation. It discusses the convergence criteria that member states must meet to participate in the Eurozone and the mechanisms for addressing excessive deficits.
- Why are the markets controlling now the national debt?: This chapter explores the reasons behind the growing influence of financial markets on national debt, particularly in the aftermath of the 2008 financial crisis. It analyzes the evolution of market practices and the factors influencing the assessment of country risk.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this paper are: Greek debt crisis, Eurozone stability, Stability and Growth Pact, convergence criteria, financial markets, national debt, fiscal discipline, economic situation, European Union, Greece.
- Citar trabajo
- Fotini Mastroianni (Autor), 2014, Does the Greek debt crisis threaten the stability of the Euro?, Múnich, GRIN Verlag, https://www.grin.com/document/346685
