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Year 2 Political > 8. Crisis In Europe > Flashcards

8. Crisis In Europe Flashcards

1
Q

Who are the periphery countries of the eurozone

A

Greece, Ireland, Portugal and Spain

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2
Q

Who are the core counties of the eurozone

A

Germany, Finland, France, Netherlands, Austria

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3
Q

What was there launch of the euro?

A

1999

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4
Q

What did the future look like after the introduction of the euro

A

Bright and positive

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5
Q

What is the eurozone as much as economic

A

Political

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6
Q

Which country is said to have fudged entry criteria into the Euro zone

A

Greece

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7
Q

What is bounded Europe?

A

A Europe comprised of concentric political affiliation a loyalty

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8
Q

What can we see on the concentric rings model?

A

Different levels of eurpeaness from the core to the periphery

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9
Q

Which countries have a more coordinated vision of how problems should be solved?

A

The original EEC6

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10
Q

What do different levels of European integration entail?

A

Wealth, Teriary sector to primary sector, importance of land use, economic wealth is crucial

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11
Q

What did the UK do when the euro was proposed?

A

Swelled upon the problems of the exchange rate mechanism, tried to bring together different currencies

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12
Q

What did the leaders of Germany and France say about integration

A

It was their duty to continue integration

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13
Q

What are the principle rules to join the single currency

A

Your national inflation rate to be broadly similar to interest rates, your budget deficit can’t exceed 3% of GNP, No debt load over 60% of their GNP

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14
Q

How many euro bank notes were printed?

A

14.5 million bank notes total of 400billion

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15
Q

How much copper was needed to make 75billion coins

A

250,000 tonnes of copper and nickel

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16
Q

How many states use the euro

A

19

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17
Q

Who is the guardian for monetary policy

A

European Central Bank

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18
Q

Who sets interest rates?

A

Bank leaders to make sure inflation doesn’t exceed 2%

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19
Q

What is the growth stability pact?

A

Aims to set debt targets for members

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20
Q

Who is in charge of fiscal policy and national budgets

A

Member states themselves

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21
Q

What is fiscal policy?

A

Taxation, setting budgets and deciding how much budgets will be spent

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22
Q

What can the currency be described as?

A

1 size fits all currency

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23
Q

Where did we see differing success in the euro zone?

A

Core and periphery

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24
Q

What positives did we see in the new eurozone

A

Increasing employment, economic growth and development

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25
Q

Which counties began to borrow?

A

Countries that had higher inflation, money seemed to be cheaper

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26
Q

Where did we see increasing borrowing

A

Not just amount the population but business and governments

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27
Q

What did increased borrowing lead to?

A

Rising debts

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28
Q

What were loans spent on?

A

Large ticket items rather than eduction skills ect

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29
Q

What was the borrowing between core and periphery?

A

Periphery borrows money from core states

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30
Q

What interest do countries start to act in?

A

Ones that benefit the eurozone economy rather than their own

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31
Q

Where do we see house price and construction booms

A

The core

32
Q

How many periphery countries ran debts from 1999-2007

A

All of them

33
Q

When do we see an optimal currency zone?

A

When countries converge economically and have flexable product and labour markets

34
Q

What are the desired attributes of an optimal currency zone?

A

High geographical mobility of labour, High Occupational mobility of labour, wage and price flexibility

35
Q

If a currency zone is optimal what happens during an economic shock

A

Similar response

36
Q

Is Europe’ a currency zone?

A

Not really, core groups are similar but divide with the periphery

37
Q

When was the financial crisis

A

2007-2008

38
Q

What caused the financial crisis

A

Started in the US, mortgages of 100% were beginning to be offered nationally, damaging when lent to people that couldn’t pay for it

39
Q

Give an example of an investment bank that collapsed?

A

Lehman brothers

40
Q

Who began to value and question the value of what they actually had?

A

Shareholders and stockholders

41
Q

Which countries in Europe took the larger debt

A

Periphery

42
Q

What were national banks traditionally known as?

A

Lenders of last resort

43
Q

Why couldn’t the ECB act as a lender of land resort

A

Maastricht treaty 1992

44
Q

How big were national banks relative to their economies?

A

Large

45
Q

What was the euro introduced for?

A

To increase competitiveness

46
Q

Who picks up the tab for the financial crisis?

A

National banks

47
Q

How much loan does Greece get in 2010?

A

110 billion, Eu worries government would leave Eu

48
Q

What are the national consequences of the euro on Ireland

A

Benefitted a lot, Ireland described as a Celtic tiger

49
Q

When did Ireland have a banking crisis of its own?

A

2010-2013, harsh measures were taken to respond to unemployment of 14%

50
Q

What helped to caused the financial crisis in Ireland

A

Reckless lending by property developers

51
Q

What aid package does Ireland adopt?

A

85bn gradual recovery

52
Q

What can be said about he way the Eu felt with Ireland

A

Fast and swift led to better economy, good finincial stewardship

53
Q

Why was Greece destined to fail in the eurozone

A

Erroneous way it entered into the Eurozone, Greek economy layered with structural flaws

54
Q

How much money did Greece borrow in total?

A

€350billion

55
Q

What was Greece’s fiscal discipline like?

A

Weak, make red by mass consumption and construction booms

56
Q

What was the consequence of financial crisis in Greece?

A

Wages rise, competitiveness decreases, unstable pension and health system

57
Q

Who put together the aid package for Greece?

A

Eu and IMF

58
Q

What was unemployment in Greece?

A

Up to 22%

59
Q

How much were wages cut by in Greece

A

40%

60
Q

How much money did France loose thanks to Greece

A

55

Billion

61
Q

How much will Greece’s debt load be by 2020?

A

120% of its GNP

62
Q

When was Greece’s co elition government elected?

A

2015

63
Q

What are the new facist group in Greece called

A

New Dawn

64
Q

Why are the 2 arguments to what the ECB should be?

A

France thinks it should have more powers but Germany thinks it should be an honest stock broker

65
Q

What other periphery countries were effected by the financial crisis

A

Italy Portugal and Spain

66
Q

What was the eurozone growth in 2016

A

1.5% sluggish growth

67
Q

What is the view of financial markets now

A

More relevant to lend to eurozone countries

68
Q

When did Greece see drastic cuts in public spending?

A

2010-2014

69
Q

What was created to be used in the face of a crisis?

A

European stability facility , bailout of around 500 billlion, made available to countries in the eurozone that need bailing out

70
Q

If a country needs aid who does it apply to?

A

The European Commission

71
Q

When was quantative easing introduced

A

2015, used to correct money supply, declined money in circulation, 1 trilllion euros in circulation

72
Q

What is the idea behind Europe 2020 growth

A

Increased dynamics integrity, innovation, builds on the Lisbon treaty, diversification and competitiveness, economic reform programme

73
Q

How can counties confront the crisis on a national scale?

A

Periphery obliged to adopt drastic austerity measures and accelerate reforms, stimulus vs austerity debate

74
Q

What is the eurosceptic view of the eurozone

A

It will break up, doomed from the start, European counties too different, public debt levels are not sustainable, austerity measures are too servere, leaving the euro only option

75
Q

Who said that Europe will not survive the first major economic recession

A

Milton Friedman, chicago school of economics, put the wind in the sails of neoliberalism

Year 2 Political (9 decks)

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