The Eurozone Crisis: Overview and Issues for Congress

by Sabrina I. Pacifici on September 27, 2012

CRS – The Eurozone Crisis: Overview and Issues for Congress, September 26, 2012

  • “What started as a debt crisis in Greece in late 2009 has evolved into a broader economic and political crisis in the Eurozone and European Union (EU). The Eurozone faces four major, and related, economic challenges: (1) high debt levels and public deficits in some Eurozone countries; (2) weaknesses in the European banking system; (3) economic recession and high unemployment in some Eurozone countries; and (4) persistent trade imbalances within the Eurozone. Additionally, the Eurozone is facing a political crisis. Disagreements among key policymakers over the appropriate crisis response, and a complex EU policy making process are seen as having exacerbated anxiety in markets. Governments in several European countries have fallen as a direct or indirect result of the crisis.”
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