Essay on Internship Report

7078 Words Jan 14th, 2012 29 Pages
Index Page No. 1.0 Overview 2 2.0 The Establishment of the Euro Zone and the introduction of the Euro 2 3.0 Key Causes of the European Financial and Economic Crises 3 4.0 The Start and Progression of the European Debt Crisis 5 5.1 Greece 6 5.2 Portugal 6 5.3 Italy 7 5.4 Spain 7 5.5 Ireland 8 5.6 Iceland 9 5.0 Measures Taken (so far) to Combat the Debt Crisis (European Level) 10 6.7 European Financial Stability Facility (EFSF). 10 6.8 European Financial Stabilization Mechanism (EFSM). 10 6.9 ECB interventions. 10 6.10 Brussels Agreement. 11 …show more content…
This report, instead will attempt to deliver a comprehensive overview of the crisis, such that the reader will obtain a complete working knowledge of the European Debt Crisis by perusing this report (and references).
2.0 The Establishment of the Euro Zone and the introduction of the Euro
Established in its current form in 1993, the European Union is currently composed of 27 members, out of which 17 nations, namely Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain, comprise the economic and monetary union (EMU) known as the Euro Zone.
To obtain full membership to the Euro Zone and the right to adopt the Euro as its’ functional currency, prospective members have to demonstrate compliance with the Maastricht Treaty, put in place upon the founding of the Euro Zone. The treaty’s purpose was to safeguard the economic stability of the Euro Zone, to which end (and for the purposes of our report), the following four articles are particularly relevant: 1) The member country cannot have inflation rate 1.5 percentage points higher than the average of the three EU countries which have the lowest inflation. 2) The ratio of the annual government deficit to gross domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year.

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