Today the situation is such that here and there we have to read news about the Eurozone crisis. This is not surprising, because this issue concerns residents of many European countries and worries everyone who is not indifferent to his future.
It is worth noting that the debt crisis first affected only the peripheral countries that are part of the European Union, but since the beginning of 2010, we can confidently note the increase in the number of states that have experienced the intervention of this difficult situation in the life of the country. Now it can be noted with confidence that almost the entire euro area is under the influence of the crisis, the source of which experts consider the situation on the Greek government bond market.
Many associate the Eurozone crisis with the impossibility of refinancing public debt without intervention, or rather assistance, intermediaries. Already at the end of 2009, many predicted a similar situation, observing an increase in debt growth around the world, therefore it should be noted that at the same time the credit rating of a number of EU countries was reduced.
It cannot be said unequivocally that the Eurozone crisis has the same causes in different countries. Some states have come to this due to the emergency assistance provided by the government to companies in the banking sector.
I would like to note that Greece felt a significant increase in public debt due to the disproportionately high level of wages of civil servants and impressive payments of pensions.
Speaking about the Eurozone crisis, the reasons for which are still ambiguous, experts are divided. Some believe that one of the important influencing factors was a significant increase in the investment fund, just in the period 2000-2007, which was formed due to the savings of the private sector. This growth can be attributed to the fact that many global investors' markets have reached a new level with too high economic growth rates.
The Eurozone debt crisis has largely become possible under the influence of a number of factors that have had their one-time impact. For example, the sharp availability of loans in the period from 2002 to 2008, which instantly made it possible to issue substantial cash with a significant share of risk. As a result, many creditors found themselves in a "deplorable" position, faced with defaulters. Undoubtedly, the comparatively low rate of economic growth, which has continued from 2008 to the present, is also having an effect.
Implemented practices of providing state financial assistance to private holders and banking sectors have also affected the development of the crisis.
It is curious that government bonds of most EU countries were considered to be a constant that does not bear the risk of default. So, one could safely consider Greece to be a state with an impressive amount of safe types of investments that bring significant income. However, the Eurozone crisis has significantly changed the idea of the investment opportunities of many countries, so the conflict of interests of banks that were involved in the probable assessment of loan repayments became natural.
Such a loss of confidence in government bonds has undoubtedly led to a significant increase in the value of credit default trunks, which are indicative of the country's credit rating. Already in February 2012, several of the largest banks in Greece agreed to provide collateral, which is estimated at 880 million euros, in order to receive a guaranteed package of financial assistance.
The unpredictable is still seeing the end of this whole situation, residents of some countries are gathering protests against the policies pursued by the government. For example, thousands of Spaniards took to the streets to take part in the so-called March in Madrid, which was held under the slogan “They want to destroy our country. We must stop this. ”
Residents of many countries require immediate reforms and decisions that can balance the state of the economy and restore a calm and stable life to citizens.
