The Eurozone Crisis

The European Union is a big topic, so we i just going to briefly discuss   some aspects: the crisis in the eurozone. I will take about one of the countries most affected and what measures are being taken.

The euro, the dream of many a politician in the years following World War II, was established in Maastricht by the European Union (EU) in 1992.

The financial crisis blowed up in October 2008 , Iceland dropped into national bankruptcy  condition because of the national debt serious overload, then the eurozone member countries because respective liabilities high proportion, they have become in a domino after the bankruptcy of Iceland  , Greece, Ireland, Portugal, Spain and other countries have in national debt crises. October 20, 2009 Greek debt crisis surfaced formally as the euro crisis of the curtain was opened. The total debts of eurozone crisis countries will more than 3.8 trillion euros (including Greece 236 billion, Ireland  867 billion, Spain 1.1 trillion, Portugal 286 billion, Italy 1.4 trillion). Therefore, the mos influences of the euro crisis is Italian.

Face to  the euro crisis, Italian government bonds climbed after the European Central Bank was said to buy the securities and German Chancellor Angela Merkel called for political action to stem the debt crisis. Italian five-year notes rallied, pushing yields 23 basis points lower to 6.70 percent after the ECB was said by four people with knowledge of the transactions to have bought the nation’s debt today.(Paul Dobson, 2011)                   



References:
Paul Dobson, 2011. `French, Italian Bonds Rise on Euro Crisis Optimism; Spanish Notes Decline`. Available at (Online): http://mobile.bloomberg.com/news/2011-11-17/spanish-10-year-government-bond-yield-rises-to-euro-era-record-of-6-463-  (accessed: November 17, 2011)

http://www.google.co.uk/search?q=european+union+picture&hl=zh-CN&prmd=imvns&tbm=isch&tbo=u&source=univ&sa=X&ei=z2gsT_uGJsTG0QW2s7itCA&ved=0CC8QsAQ&biw=1280&bih=681