The financial crisis in Europe was a part of the global aftermath of the collapse of the American housing market in 2007 and 2008. It first affected the two economies largely dependent on this market – Spain and Ireland. Portugal followed soon after, as all of these countries asked for financial help that was given to them at the expense of ie. cuts in social spending.
Later on problems in Greece erupted – an effect of trade imbalances after the creation of the common currency – the euro, and hiding of the true state of the public finances of the country. Years of corruption, lack of strong public fiscal authorities and a byzantine fiscal system, with lots of exemptions targeted on different – mainly rich – social groups took their toll. The austerity measures proposed by the Troika – the World Bank, International Monetary Fund and the European Union – only made the problems worse. Social and political collapse of the country led to shortages in the funding of health care and the rise of Golden Dawn – a neo-nazi political party, promising to rid the country from immigrants, often even threatening to kill them.
The Euro Crisis Blog wants to focus on the issues, that affect the Eurozone. Its crisis has many dimensions – amongst the economic, social and ecologic ones. The site is regularly updated with opinions about the situation in different European Union Countries, and in the EU as a whole.
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