RAMESH NARISETTY

Presented by,

SSN ENGINEERING COLLEGE

EUROZONE DEBT CRISIS & IT’S IMPACT

IMPORTANCE OF CONCEPT

EUROPEAN UNION

1999: Austria,Belgium, Finland,France, Germany,Italy, Ireland,Luxembourg,Netherlands,Portugal,

Spain2001: Greece2007: Slovenia2008: Cyprus, Malta2009: Slovakia2011: Estonia

REASONS FOR CRISIS

GOVT

WHY THE DEBT INCREASE

High bond yields.

Lower tax returns.

Weakening export

competitiveness.

Large current account &

budget deficits.

300 billion Euros Grees debt

IMPACT ON EUROPEAN UNION

Reducing actual & potential

growth.

Labour market &

employment.

Budgetary positions.

Individuals.

IMPACT ON GLOBAL ECONOMYTrade & economy.

Foreign investments.

Reducing financial

wealth.

Reducing

competitiveness.

Fluctuations in

exchange rates.

IMPACT ON INDIA

Fluctuations in rupee

value.

Inflationary pressure.

Policy rates increased.

Slow down exports &

imports.

Other market areas.

MEASURES TO CONTROL CRISIS

ECB interventions.

European monetary fund.

European stability

mechanism.

World bank & IMF

bailouts.

“A JOYFUL RIDE”

CONCLUSION

ANY QUERIES