World economic crisis ,eurozone and its currency

Assignment on English for economic purposes ivInstructor: Theodora Tseliga Academic year:2013-2014

Anastasios Papanikolaou 2492 (G.L.)Sevastianos-RafaIl Nikitas-Streicher 2477Konstantinos Koutlas 2430Katerina Tzereme 2531

TABLE OF CONTENTS

1.Introduction 2.World crisis 2.1 The effects of the global crisis

in the European union 2.2 What led to the European crisis? 3.Euro as common currency 3.1 Positive and negative aspects 4.Future prospects 5.Conclusion

1.INTRODUCTION

What is a crisis ? Crisis is a period of time in which a system doesn’t function properly, signaling the need for help What is an economic crisis ? Economic crisis is a length of time that the economy functions poorly. The value of economic organizations is very low,production is very low and sometimes it doesn’t meet the level of demand

2. WORLD CRISIS

Started in 2008 in the US Causes of the financial crisis:1)The real estate bubble in the US2)The collapse or the risk of collapsing for some financial institutions (e.g. Lehman Brothers,Bear sterns) What caused the housing bubbles in the US

? 1) Low interest rates in the US 2) Big increase of savings from rising economies

2.1 THE EFFECTS OF THE GLOBAL CRISIS IN THE E.U.

Fiscal deficits and debt continuous increase

Unemployment increase Discontent among the citizens

2.2 What led to the European crisis ?

Opening the boarders to third world countries

The flourishing of free competition Different expectations and

requirements between countries that are members of the European union

These are the main factor that led to the european crisis

3.EURO AS COMMON CURRENCY

Euro was Invented in 1999 Now 17 of 28 countries use it as their

currency More than 330 million people in

europe use it as their currency

3.1 POSITIVE AND NEGATIVE ASPECTS

POSITIVE ASPECTS

The lack of exchange rates between countries which have euro as their currency makes the exchange of products easier

Consumers are able to compare the real value of products

Enhances the feeling of unity among europe

NEGATIVE ASPECTS

As countries don’t have their own currency they lose the option of a devaluation.

There are difficulties in dealing with different problems at the same time with the same policy

It is easier for the crisis and bank panic to be spread among Eurozone

4.FUTURE PROSPECTS

FUTURE PROSPECTS

Besides the uncertainty significant progress has been noticed

Developing economies have started to contribute in the effort to exit the crisis

Although unemployment is beyond 24% in some countries of the eurozone it is said that within a decade it will drop to 16%

By analyzing the causes of the crisis in depth eurozone is made stronger and less vulnerable to future problems

5.CONCLUSION

After the crisis people became more careful with their investments

Citizens became more careful in their political choices

Eurozone’s main target is to strengthen the weaker economies and keep the strong economies at the same level