"The Contribution of the European central bank in the confrontation of the crisis. The case of Greece"

Résumé du document

The situation of Greek's finances is catastrophic: a public deficit of 12.7% of the GDP in 2009 and 9.4% in 2010. A public debt of 300 billion euros at the end of 2009 and expected at 12.0% of the GDP in 2010 while the limit imposed by the EU is 3% of the PIB. This problem worried the markets because the former government had falsified the numbers. Indeed, the previous government had announced a public deficit of 6% of the GDP in 2009. Georges Papandréou, after he became the head of the government on the 4 of october, revealed the reality, a deficit of 12.7%.

Extraits

[...] III) The intention of the European actors to help Greece to ensure the economic stability of the Union The 25 March 2010, the European Council declared to be agree with a mechanism of support to Greece. The 11 april 2010, the Eurogroup, the European Commission, the ECB et the chiefs State or the Prime ministers of the euro zone made a evaluation of the situation in Greece and negociated a common programme with greeks authorities. The Government of Mr Papandreou called the activation of the support plan to save the country from bankruptcy. [...]

[...] The consequence is a reduction of fiscal's revenues. To finish, it's a country which doesn't export a lot and therefore shows a structural deficit in foreign trade. II) The European Central Bank: presentation The ECB is the successor of the European Monetary Institute which was established at the start of the Economic and Monetary Union to handle the transitional issues of states adopting the euro and prepare for the creation of the ECB. The ECB formally replaced the EMI on 1 June 1998 by virtue of the Treaty on European Union; however it did not exercise its full powers until the introduction of the euro on 1 January 1999. [...]

[...] Member states of the eurozone, the European Commission, the IMF are the contributors. The European Union will give 500 billions of euros. On this amount billions will be provided directly by the European Commission. The remaining 440 billions will be provided by Member States of the Eurozone (plus Poland and Sweden who wanted to join) according to their share capital of the ECB. The IMF has ensured that it will provide half of the contribution of the EU, the remaining 250 billion to 750. [...]

[...] The countries of the eurozone are giving an amount proportional to their part in the capital of the ECB. For example, France is experiencing to lend 16,8 billions of euros over three years by bilateral loan agreements with Greece coordinated by the European Commission through finance law amendment . IV) The crisis in Greece and in all Europe: source of new ideas regarding the prerogatives of the ECB In the current climate, the preoccupations of the economists are to curb the risk of a contagion of the crisis in Greece, for example in Spain or in Portugal. [...]

[...] La Banque centrale européenne face à la crise grecque Contribution of the EUROPEAN CENTRAL BANK in the confrontation of the crisis. The case of Greece” We are going to see the cause of the greek economical crisis, what is the contribution of the European Central Bank (ECB) to solve it and how this crisis is affecting all Europe. The greek crisis: explanations First of all, we are going to start the analysis by a brief chronology of the different events which marked the crisis and can explained why this country is in this critical situation. [...]