In Toni Vorobyova’s article, Spain pushes euro zone equities to worst day in 2 months; he discusses how the euro zone equities suffered their worst session in two months. There were violent anti-austerity protests in Greece and Spain that has been an obstacle for the euro zone to cross as they make their way out of recession and financial crisis. There were disagreements among euro zone member countries on how to recapitalize struggling banks. Along with banks, the article also discusses the issues
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Greece Joining Euro Zone in 2001 Was A “Big Mistake” Summary There has been a long debate going on since ever on whether joining Euro Zone was a mistake on the part of Greece, and whether Greece should have been allowed to join the euro even when Greece wanted to. It was a mistake by Greece to join the euro single currency when it did because its economy was not ready to form a monetary union with others in the club. Trouble in the public sector, problems with taxes, structural challenges and
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Enter the economy of euro zone member, Greece. Once considered as a financially stable country, Greece is now on the edge of having a financial default. With a debt total amounting to an estimated $420 billion, experts say that this debt would have been bigger that the country’s economy itself and this debt is predicted to increase as time goes by because Greece spends 12% more than it gets revenues. So what’s exactly went wrong with Greece and how did they get themselves in deep trouble? One main
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Background EU Crisis • 1957 - Treaty of Rome (Germany, Belgium, Luxemnourg, Italy, France and Netherlands) • 1979 European Monetary Union (EMU) - Exchange Rate Mechanism (ERM) • still own currencies • economic cycles were not in sync • 1992 The Maastricht Treaty - introducing the Maastricht Criteria: • Independence from their governments • Convergence in inflation rate >> convergence in long-term interest rates (average had to be near of the group‘s best performer) • Fiscal deficits
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By: John Deere For years, the country of Greece was a great place to call home. It had a very high-income economy and was one of the world leaders in terms of standard of living for its citizens. The tourism industry was growing faster and faster and helped to fuel the fire beneath the economy. In fact, Greece’s economy expanded at one of the highest rates in the Euro zone in the early 2000’s due to the high volume of tourists that it accommodated. Unfortunately for them, this growth was
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Will the Euro Survive? 1. Why are Greece, Ireland, Italy, Portugal, and Spain sometimes referred to as the euro zone’s “peripheral countries”? * Greece, Ireland, Italy, Portugal, and Spain are the poorest in European Union. They are poor because of the unefficient and unsupporting system of the country to join the EU one-currency and trading system. * Greece, Ireland, Italy, Portugal, and Spain are exploited by the centre EU countries. * Their contribution in developing and maintaining
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Greece Crises : Is default the only option? Summary: The debate over "Greece sovereign debt crises as a tragedy or opportunity" has varied viewpoints. I believe that under the circumstances given in the case, it was not right to default by Greece on external debt as there were other measures such as total factor productivity through which we could reduce the fiscal deficit and convert it into fiscal surplus similar to the rest of the European union. ________________________________________
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KTM’s growth direction alternatives regarding new geographies? (550 words)- Similarities and differences KTM has 2 growth opportunities in terms of new geographies. The company can further expand its presence in the European or North American markets. If we define market by geographies, this is considered as a market penetration strategy under Ansoff Matrix, as the company focused on selling existing products into existing markets. To assess the attractiveness of European or the US markets, we
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BRUSSELS (Reuters) - EU finance ministers sought to break a deadlock over shoring up European banks on Saturday, after euro zone countries called for steeper losses for holders of Greek bonds to help resolve a debt crisis that threatens to damage the global economy. With France and Germany deeply divided over how to bolster the rescue fund that underpins the euro zone, leaders have scheduled a string of meetings in the next days to tackle Greece's debt and limit its impact on the banking system
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Consequences of a Euro break-up * The Euro should not exist (like this) Under the current structure and with the current membership, the Euro does not work. Either the current structure will have to change, or the current membership will have to change. * Fiscal confederation, not break-up Our base case with an overwhelming probability is that the Euro moves slowly (and painfully) towards some kind of fiscal integration. The risk case, of break-up, is considerably more costly and close to
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