This document discusses the economic and political crisis of the Eurozone, focusing on the Greek sovereign debt crisis. It provides background on how Greece accumulated large debts and budget deficits over the past decade through overspending and misleading financial reporting. This led Greece to require bailouts from other European countries and international lenders. However, the response was slowed by conflicting views between Germany and other countries on how to resolve the crisis, fueling speculation and lack of confidence in the euro. The document examines key events and impacts of the crisis on Greece and other Eurozone countries.

1. International Economy
Session 3: The Crisis of the Euro
Niki Papadopoulou
Fall 2012

2. A little note…

3. International Economy:
The Economic and Political Crisis of the European Union
Presentation by Students
The Greek sovereign crisis
Who, what, when, how and why of the EU crisis
Germany vs. the others

4. International Economy:
The Economic and Political Crisis of the European Union
Presentation by Students
The Greek sovereign crisis
Who, what, when, how and why of the EU crisis
Germany vs. the others

5. The Headlines

6. The Headlines

7. The Headlines
PMI: Purchasing
Managers Index:
Key Economic
Indicator made-up
of five sub-
indexes:
-Production level
- New orders
- Supplier
deliveries
- Inventories
- Employment
level

8. The Headlines

9. The Headlines

10. The Headlines

11. The Headlines

12. The Headlines

13. The Headlines

14. It says it all….

15. It says it all….

16. It says it all….

17. Speculation

18. Contagion!!!

19. Contagion!!!

20. Getting weaker…

21. The influence of markets…

22. Before and after the EU
Greece, 1980 Greece, 2012

23. Before and after the EU

24. The privileges of the few

25. How does a country go
into debt?
Too much of this:
Not enough of that:

26. Plus things were not what
they seemed to be…

27. Plus things were not what
they seemed to be…

28. Where does it all go?

29. Where does it all go?

30. But it’s not over…

31. Not only a
Greek problem:

32. Who

33. Who

34. Who

35. Who

36. Who

37. Who

38. Who

39. Who

40. What

41. What’s the cost?

42. What’s the cost?

43. Where

44. Where

45. How

46. How

47. How?

48. How (did it get this bad)?
What Greeks were doing the last 10 years
(according to the Germans)

49. How (did it get this bad?)
• Greece was treated as a Northern European borrower while it did
not and had never acted like one.
• Slow reaction to the Greek crisis and conflicting views between the
leading countries of the Eurozone (France and Germany) led to
speculation, prolonging the crisis and leading to a serious lack of
confidence in the euro itself.
• The cost of the Greek bailout multiplied each day that Germany and
the other EU countries could not agree on what to do--as investors
lost confidence the price of the bailout increased.
• Germany’s defenders say that Greece would never agreed to such
an austerity package had it not been for the stress of a potential
economic apocalypse.

50. How (did it get this bad)?
But…

51. Why (the beginning of an
answer)
Le 3 janvier 1996, l'Etat
grec confiait au
consortium franco-
hellénique Gefyra S.A.
une concession de 42 ans
pour la conception, la
construction, l'exploitation
et l'entretien du pont
Harilaos Trikoupis. L'UE
apportera un appui
financier important –
subvention du FEDER,
prêt de la Banque
européenne
d'investissement (BEI) – à
cet ambitieux chantier.

52. Even Historical Figures
are Upset…