BY: Adarsh Pandey E2 Asheen Pradeep E11 Ashish Dubey E12 Geethika Nair E14 Ravjeet Kapany E29
BY: Adarsh Pandey E2 Asheen Pradeep E11 Ashish Dubey E12 Geethika Nair E14 Ravjeet Kapany E29
BY: Adarsh Pandey E2 Asheen Pradeep E11 Ashish Dubey E12 Geethika Nair E14 Ravjeet Kapany E29
ADARSH PANDEY E2
ASHEEN PRADEEP E11
ASHISH DUBEY E12
GEETHIKA NAIR E14
RAVJEET KAPANY E29
GREECE CRISIS EXPLAINED
• Sovereign Debt Greece owed the European Union between 2008 and 2018.
• In 2009, Greece’s budget deficit was 12.9 percent of its GDP.
CONTINUED
• In 2010, Greece implemented Austerity Measures and got 240 billion euros in emergency funds
in return.
• By 2012, Greece's debt-to-GDP ratio to 175 percent, almost three times the EU’s limit of 60
percent.
• In 2014, Greece’s economy appeared to be recovering, as it grew 0.7 percent. The government
successfully sold bonds and balanced the budget.
• In January 2015, voters elected the SYRIZA party to fight the hated austerity measures
• On July 5, Greek voters said "no" to austerity measures. The instability created a run on the
banks.
CONTINUED
• European Financial Stability Mechanism and European Stability Mechanism: 168 billion euros
Austerity Measures
Austerity Measures
30-billion-euro ($40.3 billion) package of austerity measures on raising taxes and increasing the pension age in a
drive to shore up Italy’s strained finances and stave off a crisis that threatens to overwhelm the euro zone
Measures where divided between €20bn of budget cuts and a further €10bn of measures to boost growth.
Between 2009 and 2013, more than 1.7 million small and medium enterprises (SMEs) were forced to close
ITALY’S GDP
GDP shrunk by a massive 10 per cent since 2007(Hardest Hit country after Greece)
20 per cent of Italy’s industrial capacity had been destroyed
ITALY’S PER CAPITA GDP
“Italexit” Or “Quitaly
CAUSES THAT LED
TO RECESSION
Market
Housing
GDP
Unemployment
Healthcare
GDP
UNEMPLOYMENT
RECOVERY MEASURES IMPLEMENTED
• India as a whole appears to have greater exposure to the euro zone than to the US going by our exports. As of March
2011, 10% of our total exports were to the US while 18% were to Europe.
• Growth slowdown of the Indian economy by hurting our exports and affecting capital inflows into India.
• The capital outflows have resulted in crash in our stock markets that have affected investment sentiments of the corporate
world.
• The slowdown in GDP growth to 6.2 per cent in 2011-12 and 5 per cent in 2012-13 was partly due to Eurozone crisis.
IMPACT ON INDIAN COMPANIES
• On June 30, 2015, Greece became the first • Around 17.5% of the GDP is spent by Greece in
developed country to default an IMF loan pension payments which is highest in the Europe.
payment of USD1.7 billion. • The debt to GDP ratio of Greece is as high as 172%
which too is highly unsustainable.
• Greece is at the verge of being declared a
bankrupt nation and is urgently needs another • Tax evasion in Greece is also at its peak where only
bailout package to come out of the current one third of the population pays taxes.
crisis. • On the balance of payments front also Greece
suffered a lot.
• On June 29, Greece imposed capital controls
and closed the banks till July 6. Many things • Unemployment rate in Greece is also highest in
would get clear after the country votes in the Europe at 25% which means that one in every four
referendum of July 5. persons is unemployed in Greece.