THE BBC’s Inside Europe: 10 Years of Turmoil has been looking at the tumultuous decade that has threatened to tear the EU apart. Episode Two looks at how the international financial crisis caused the Greek economy to collapse which in turn led to the Eurozone coming close to meltdown. What was the international financial crisis and how did it affect the eurozone? The Euro came into existence on January 1 1999 and Greece joined in 2002. Greece soon began borrowing money at relatively low rates of interest with government and consumer spending growing rapidly. Other countries also enjoyed a cheap credit splurge, in particular Portugal, Ireland and Spain, which all enjoyed debt fuelled economic booms. Eurozone countries were meant to keep their budget deficits – the difference between borrowing and revenue – down to 3 per cent but France and Italy also broke that limit. Countries were only allowed to borrow 60 per cent of GDP but many broke that rule as well. The countries seemed to be able to cope with large levels of debt until the international financial crisis hit the world economy. Problems began with the US so called sub-prime mortgage crisis of 2007 when interest rate… Read full this story
- Commentary: Are we ready for the next major financial crisis?
- Commentary: Getting ahead of the next Asian financial crisis requires stronger institutions
- Grant Shapps ends any hope of holidays - foreign OR domestic - this year amid backlash at Matt Hancock's 10-year prison sentence for travellers who lie about visiting Red List countries
- Tories slam Matt Hancock for 'demeaning his office' with overblown threats of 10 YEARS in jail for 'red list' travellers who lie on forms as it emerges the law WON'T be changed and experts vow to 'eat a face mask' if anyone ever gets the full punishment
- Hope still lives among the Syrian people, 10 years after the war started
- UN Chief: 10 Years Into Conflict, Syria Remains ‘A Living Nightmare’
- Can Russia Help Joe Biden Get the U.S. Out of Syria's 10-Year War?
- 10 years on, no peace after war in Syria
- Singapore's jobless rate highest in 10 years, total employment registers record decline in Q1
- Shanghai's quest to become an international financial centre
Inside Europe: 10 Years of Turmoil – what was the international financial crisis and how did it affect the eurozone? have 355 words, post on www.thesun.co.uk at February 3, 2019. This is cached page on IT Breaking News. If you want remove this page, please contact us.