Eurozone debt crisis

To date, the situation develops in such a way that here and there we have to read news about the crisis of the Eurozone . This is not surprising, because this issue concerns residents of many European countries and worries everyone who does not care about his future.

It should be noted that the debt crisis affected first only the peripheral countries that are part of the European Union, but from the beginning of 2010 it can be noted with certainty the growth in the number of states that have experienced the interference of this difficult situation in the life of the country. Now we can say with confidence that almost the entire euro area is under the influence of the crisis, the source of which experts consider the situation in the market of government bonds of Greece.

Many people attribute the crisis of the Eurozone to the impossibility of refinancing the state debt without intervention, or rather assistance, intermediaries. Already at the end of 2009, many predicted a similar situation, watching the increase in debt growth around the world, therefore it should be noted that simultaneously with this, the credit rating of a number of EU countries fell.

It can not be unequivocally said that the crisis of the Eurozone has the same reasons in different countries. Some states came to this at the expense of emergency assistance provided by the government to the banking sector companies.

I would like to note that Greece has experienced a significant increase in public debt due to the incommensurably high level of salaries of civil servants and impressive payments of pensions.

Speaking about the crisis of the Eurozone, the reasons for which are still ambiguous, experts are divided in opinions. Some believe that one of the important influencing factors was a significant growth in the investment fund, precisely in the period 2000-2007, which was formed at the expense of private sector savings. Such growth can be attributed to the fact that many world markets of investors have reached a new level with too high rates of economic growth.

The euro zone's debt crisis has largely become possible under the influence of a number of factors that have had their one-time impact. For example, the rapid availability of loans during the period from 2002 to 2008, which immediately made it possible to issue significant cash with a significant share of the risk. As a result, many creditors found themselves in a "deplorable" situation, faced with defaulters. Unquestionably, the comparatively low rate of economic growth, which continues from 2008 to the present day, has an impact.

The introduced practices of providing state financial assistance to private holders and banking industries also affected the development of the crisis.

It is curious that the government bonds of most EU countries were considered as a constant, which does not bear the risk of default. So, it was possible to consider Greece as a state having an impressive number of safe types of investments, which bring a significant income. However, the crisis in the Eurozone has significantly changed the perception of the investment opportunities of many countries, so the emergence of a conflict of interest of banks, which were engaged in a probable assessment of repayment of loans, became natural.

Such a loss of confidence in government bonds, undoubtedly, led to a significant increase in the cost of credit default trunks, which are indicative in assessing the country's creditworthiness. Already in February 2012, several of the largest banks in Greece gave their consent to the provision of collateral, which is valued at 880 million euros, in order to receive a guaranteed package of financial assistance.

Unpredictable is still the end of the whole situation, the inhabitants of some countries are gathering protest actions against the policy pursued by the government. For example, thousands of Spaniards took to the streets to take part in the so-called March to Madrid, which was held under the slogan "They want to destroy our country. We must stop this. "

Residents of many countries require immediate reforms and solutions that can balance the state of the economy and restore citizens a quiet and stable life.