Eurozone Crisis Flashcards
describe the overall stages of the eurozone crisis
it all started with the US credit crisis which ruined the overall financial markets around the world, causing greece to become in debt, therefore EFSF is created in order to help, quickly after permament lending mechanism ESM helps portugal and Ireland get out of debt and finally the crisis is back in greece because syriza rised to power and renews negotitation with eurozone and threats to leave the EU
what is the purpose of EFSF?
european financial stability facility- provides help to memeber states with unstable economies
what is the purpose of ESM?
european stability mechanism- the permanant lending mechanism that issues finiancial loans and other finiancial assistance to memeber states
what is Troika?
a monitoring mechanism by european commission memebers. IMF and the ECB that would supervise Greeces compliance with the conditions and regulary revise them
