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Eurozone Crisis

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MAster’s in Global Management 2012/13 | EUROZONE CRISIS | Prof. Ricardo Lima | | Anar husseynov, Girish Medh, Shakeb Assri. | 1/2/2013 |

Hochschule Bremen University of Applied Sciences |

Contents 1.Introduction 3 2. History 3 2.1. The Werner Report — EMU in three stages 3 2.2. Snake in the tunnel 4 3. Purpose of single currency 5 4. Gross Domestic Product 5 5. Inflation 7 6. SWOT ANALYSIS 8 6.1. Strength 9 6.2. Weakness 9 6.3. Opportunities 9 6.4. Threats 10 7. Eurozone Crisis. 10 8. Greece’s Debt Crisis: Background 12 8.1. Build-Up to the Current Crisis 12 8.2. Financial Assistance from the Eurozone Member States and IMF 14 8.3 Why didn’t Greece leave the Euro? 15 9.Recommendations 17 10. References 18

1.Introduction
The euro (symbol: €; banking code: EUR) is the currency of 17 EU member states. It was launched on 01.01.1999 virtually, but physically launched from 01.01.2002. The currency is the second most traded currency after the US dollar. The currency is used by around 332 million people daily. €915 million in circulation, highest combined value of Bank notes in circulation in world.
The countries that use the euro are Finland, Austria, Belgium, Cyprus, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. If you are planning a trip to Europe then the euro is the currency you will need for most of the locations you visit. There are additional countries that will accept the euro even though there is no formal agreement to do so. It is managed and administered by Frankfurt based European Central Bank.
2. History
In 1969 Commission and EEC head of State propose monetary union “Werner report” by the end of 1970 by “Bretton Woods Systems”. But collapsed .The Bretton Woods’s system had already begun to show signs of strain in the late…...

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