Euro Zone Crisis and Its Impact on the Indian Economy
- Author Shanmughadas K.G
- Country : India
- Subject : Economics
The economic crisis which swept across the euro zone economies is commonly called the euro zone crisis. It resulted mainly from the excessive debt position and heavy government deficits of certain European countries. The debt crisis which began first in Greece quickly engulfed the whole Europe and later threatened the global economic system. The euro zone crisis has now become a threat even to the developing economies. Even the continued existence of euro as a single currency for many European countries is now being questioned. As a result of the crisis the European Union and International Monetary Fund had to interfere with heavy bailout packages. The affected countries had to adopt several austerity measures resulting in massive popular upsurge. Many economists started to rethink on the very fundamentals of economic theories. The crisis has exposed the fragility of existing global and economic policy tools.