One country’s fault, global resposibility – Greek debt crisis

When the European monetary union was instituted, member states had to guarantee that their annual fiscal deficits would not exceed 3% of GDP. There is also a no-bailout clause in the Eurozone agreement. Greek governments lied about the country’s fiscal problems  when it was drowning in a sea of fiscal debt. Now the annual Greek government deficit estimates at 14% of GDP, so far in excess of the 3% Eurozone stipulation.

After two months of intense debate among the joint IMF-EU Greek rescue package has finally been decided .The size of package reportedly amounts to about €45bn ($60bn, £40bn). IMF data shows that China and emerging markets have accumulated $4.8 trillion (£3.1bn) in foreign reserves. Roughly $1.7 trillion is invested in euro zone bonds rising powers that could play a deciding role on how Europe’s drama unfolds. When the EU and IMF could no longer bankroll Greece, China will lead the scene.

 In the video, top global economists Nouriel Roubini and Jim O´Neill, giving us their opinions.(http://www.ft.com/cms/885d7916-e3aa-11dc-8799-0000779fd2ac.html?_i_referralObject=15655107&fromSearch=n)

Dominique Lemmi

Yu Zhang

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One Response to “One country’s fault, global resposibility – Greek debt crisis”

  1. peterverweij Says:

    The Chinese perspective is an interesting news angle so start with that! Quote from the video and embed the video. Also give counter argument. Do you have a quote from a chinese source?

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