The economic crisis in the euro area

Authors

  • Sebastian CHIRIMBU Lecturer Ph.D. Department of Specialized Languages, Spiru Haret University
  • Alexandru BURDA Lecturer Ph.D. “Dimitrie Cantemir” Christian University, Bucharest

Keywords:

economic crises, euro, sovereign debt problems

Abstract

The article proposes an analysis of some European financial markets on the background of the recent crisis, markets that have become very alarmed by the increase of the Euro States' budget deficits and the possible entry of some of them in a situation of not being able to pay rates on debts contracted by the Government. Such imbalances can be avoided in general either by a correct evaluation or by a controlled devaluation of national currencies, or by means of the exchange rates of various currencies. However, in the Euro area, this is not possible due to the very existence of a single currency, a context in which the authors suggest the use of alternative solutions.

References

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European Central Bank, ECB decides on measures to address severe tensions in financial markets, Comunicat de presă, 2010, http://www.ecb.int/press/ pr/date/2010/ html/pr100510.en.html (accesed 12.10.2011).

European Commission. Decision of the 16 euro area Member States, 7.06.2010.

Eurostat. “Provision of deficit and debt data for 2010”, Newsrelease Euroindicators, 2010.

Flanders, Stephanie, Shares and oil prices surge after EU loan deal, 2010, http://www.bbc.co.uk/news/10104140 (accesed 12.10.2011).

Johnson, Miles. “Spain approves more spending cuts”, Financial Times, 2011.

Pop, Valentina. Obama calls for 'resolute' spending cuts in Spain, 2010, http://euobserver.com/9/30064 (accesed 12.10.2011).

Stearns Jonathan. Euro-Area Ministers Seal Rescue-Fund Deal to Stem Debt Crisis, 2010, http://www.bloomberg.com/news/2010-06-07/european-emergency-rescue-fund-would-sell-bonds-only-after-an-aid-request.html (accesed 12.10.2011).

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Published

2011-12-30

How to Cite

CHIRIMBU, S., & BURDA, A. (2011). The economic crisis in the euro area. Annals of Spiru Haret University. Economic Series, 11(4), 47–54. Retrieved from https://anale.spiruharet.ro/economics/article/view/1144

Issue

Vol. 11 No. 4 (2011)

Section

ACADEMIA PAPERS

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