What is meant by the eurozone?
The eurozone refers to an economic and geographic region consisting of all the European Union (EU) countries that incorporate the euro as their national currency.
Is Greek in the eurozone?
Greece joined the European Union in 1981, and adopted the euro in 2001 in time to be among the first wave of countries to launch euro banknotes and coins on 1 January 2002.
What is eurozone crisis in simple terms?
The European sovereign debt crisis was a period when several European countries experienced the collapse of financial institutions, high government debt, and rapidly rising bond yield spreads in government securities.
What caused the Spanish and Greek crisis?
The main cause of Spain’s crisis was the housing bubble and the accompanying unsustainably high GDP growth rate. The ballooning tax revenues from the booming property investment and construction sectors kept the Spanish government’s revenue in surplus, despite strong increases in expenditure, until 2007.
Is Sweden part of the Eurozone?
Sweden is not yet a member of the euro area. The Swedish krona is not yet within the exchange rate mechanism (ERM II).
Why did Spain go broke?
Many different factors, including the decentralized political nature of Spain, inefficient taxation, a succession of weak kings, power struggles in the Spanish court and a tendency to focus on the American colonies instead of Spain’s domestic economy, all contributed to the decline of the Habsburg rule of Spain.
Why did Greece join the euro in the first place?
Eurozone membership helped the Greek government to borrow cheaply and to finance its operations in the absence of sufficient tax revenues. However, the use of a single currency highlighted a structural difference between Greece and other member countries, notably Germany, and exacerbated the government’s fiscal problems.
Who are the members of the Eurozone that are unable to pay their debt?
Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).
When did Greece start to default on its debt?
In 2010, Greece said it might default on its debt, threatening the viability of the eurozone itself. To avoid default, the EU loaned Greece enough to continue making payments. Since the debt crisis began in 2010, the various European authorities and private investors have loaned Greece nearly 320 billion euros.
What was the GDP limit for Greece in the 1990s?
The treaty limits government deficits to 3% of GDP and public debt to 60% of GDP. For the remainder of the 1990s, Greece attempted to get its fiscal house in order to meet these criteria.