The European Crisis Of Greece, Spain, And The United States

Difficult economic situations often create international conflict and human rights abuses. Recently, the European economy experienced an enormous debt crisis. The crisis created unstable economic and social situations in many countries. The Eurozone crisis negatively affects Greece, Spain, and the United States. First, the European Union crisis elicited a health crisis in Greece. Second, the European Union crisis caused unemployment and stress in Spain. Third, the EU crisis generates negative implications for the United States’ economy. Evidently, the fall of Europe’s economy caused severe impacts on surrounding countries. The European debt crisis created a damaging health crisis for Greek citizens. In response to the EU crisis and rising debt, the Greek government implemented austerity measures on Greece (Kentikelenis, Karanikolos, Reeves, McKee, Stuckler, 2014, p. 748). However, these austerity policies proved controversial and negatively impacted the Grecian societ y. To reduce the budget deficit, Greece’s government introduced the 2010 Stability Programme (Heise Lierse, 2011, p. 506). This strategy included tax increases on pension provisions, as well as pension reforms to make finances sustainable. These changes included raising the retirement age, reducing pension funds, and adapting pension amounts to income fluctuations (Heise Lierse, 2011, p. 506). Although this program cut spending, the negative effects on the Grecian citizens were numerous. AusterityShow MoreRelatedThe Crisis Of The European Union1309 Words   |  6 PagesInflation, crisis, recession, fear, unemployment rise, debt, and depression are some of the commonly used phrases in relation to failing economies. There are many different factors that contribute to the downfall of an economy, whether it be the political structure, the aftermath of a war, or the role of government itself. A failing economy’s severity can vary based on the specific country’s si tuation. In comparison to the world, there have been a few countries under the European Union that haveRead MoreThe Greek Debt Crisis Of 2010-2014, Its Global Impact And Sustainability By Analysing Gdp And Real Interest Rate1213 Words   |  5 Pagesanalysis of the Greek sovereign debt crisis that we witness during 2010-2014, its global impact and sustainability by examining GDP and the real interest rate. This paper will also examine that several members of the European Union such as Portugal, Italy, Ireland, Spain by comparing with Greece. These countries historically known as PIIGS with Greece. Also, this paper will analyze Argentina crisis by comparing with Greece crisis. The global financial crisis which began in 2007-2008 in the USA hadRead MoreThe European Debt Crisis : A Financial Phenomenon That Affected Multiple Countries Around The World1633 Words   |  7 PagesThe European debt crisis was a financial phenomenon that affected multiple countries around the world and the shockwave almost collapse the global market. One of the countries that were greatly impacted by the crisis was Spain. Some of the implications of the event caused unemployment to skyrocket, debating the role of the European Union and the state Catalonia is seeking their independence. Ultimately, the Euro Crisis showed the weakness of the European Union and debate if it would last into theRead MoreBenefits Of The European Union1278 Words   |  6 PagesDiscuss the benefits of the European Union (EU) for its member states. Does the recent financial and debt crisis provide arguments against regional economic integration? The European Union The European union is an integrated system featuring some if not most of the countries in Europe. It is an economic and political agreement between the European member states that binds countries together through treaties, which have been signed by every country in the union. It was established back in the 1950sRead MoreThe European Union And The United States Financial Crisis1143 Words   |  5 PagesBy the end of 2008, the European Union began experiencing rippling effects of the United States financial crisis. Several member countries, most notably on the southern end of the continent, faced high levels of debt and unemployment. Portugal, Iceland, Ireland, Greece, and Spain, derogatively referred to as â€Å"PIIGS,† required extensive economic support from the EU in order to repay government debts and bail-out private banks. Disbursal of aid in 2010 proved successful in promoting economic recoveryRead MoreSpanish Financial Crisis1063 Words   |  5 PagesSpanish financ ial crisis Introduction (source: Wikipedia) The 2008–2010 Spanish financial crisis is part of the world economic crisis of 2008. In Spain, the crisis was generated by long term loans (commonly issued for 40 years), the building market crash which included the bankruptcy of major companies, and a particularly severe increase in unemployment, which rose to 13.9% in February 2009. Spain continued the path of economic growth when the ruling party changed in 2004, keeping robust GDPRead MoreDebt Crisis : A Deadly Blow1141 Words   |  5 PagesDebt Crisis: A deadly blow to the European economy Breaking down European sovereign debt crisis: The root causes of the European debt crisis stretches us way back to the purpose and structure of the formation of EU. It was the purpose of economic cooperation that contributed to the transformation of this ‘zone of war’ to ‘zone of peace’. Consequently, the political cooperation among the European countries fulfilled the structural framework in economic sector designed to make it a region of mostlyRead MoreGreece : A Common Euro Zone1486 Words   |  6 Pages In 1992 the Maastricht Treaty was developed by the European Union and signed by 12 member nations to create a common Euro Zone. This Euro zone uses a single currency called the Euro, in hopes that this currency will make transactions across all member nations’ trade and exchange easier. However, no one could have imagined how big of an impact the down fall of a nation’s deficit could have on the Euro Zone, until Greece signed the Maastricht treaty in 2002. When the Greek government cam e on to theRead MoreThe European Union : The Euro Crisis1318 Words   |  6 Pagesdecade the European Union has struggle to hold itself together against multiple crisis and national rivalries of its member nations. The European Union (EU) has time and time again overcome these union breaking threats. However, since the American recession of 2008, the EU faces its greatest challenge of its short existence: the Eurozone crisis. The Euro, the monetary unit of the EU, is falling due to the fiscal policies of the so called PIIGS nations: Portugal, Ireland, Italy, Greece, and Spain. EvenRead MoreThe Global Financial Crisis Has Caused A Massive Deterioration Of Public Finances1465 Words   |  6 Pagesglobal financial crisis has caused a massive deterioration in public finances in the euro area. The 2009 recession severely curtailed public revenues and weighed heavily on the welfare state. In addition, states have boarded on bank bailouts and costly stimulus packages. In 2010, no country belonging to the euro area was able to comply with the Stability and Growth Pact (SGP). Public debt in the euro area increased from 65% to 85% of GDP between 2007 and 2010. This debt crisis was certainly foreseeable