European Debt Crisis

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European Debt Crisis
Adelina Valencia
Dr.Huang
BUS 5200
April 27, 2013

European Debt Crisis
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The Eurozone debt crises all began when a newly elected government official took office in Greece in 2009. The prime minister announced that the deficit for Greece was 12.7% of GDP not 5% and said that the previous government had lied about this. This is what first started the European Debt Crisis. The government in Greece in May of 2010 announced that the budget deficit was much larger than what the previous government had predicted. Greece realized that they were not able to issue new debt to cover the new debt and its deficit. This is when the European debt crises all began and they requested help from the International Monetary Fund and the European Union and received a three year loan and 110 billion in euros. After two years, Greece still required assistance and the parliament approved another round of a second bailout of 130 billion euro’s. They deficit originally of 110 was actually not enough to cover their actual deficit and is why they had to ask for more help. The second year bail out required the private sector bond holders to take a reduction of the value of their bonds. The European central bank, European Union, and the International Monetary Funds stated that Greece had met the terms of the second bailout and Greece was running out of money. The Eurozone is a group of 17 members of the European Union. The European Union has over 27 members in the union and is located primarily in Europe. The member state of the European Union is a state that is a party to the treaties of the European Union and includes larger states including; France, Greece, Germany, Italy, Poland, Portugal, Romania, Spain, United Kingdom, Sweden, Belgium, Austria, Bulgaria, Czech Republic, Denmark, and Finland. These countries in exchange to being part of the…...

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