Causes and results of the European debt crisis

The main reason that brings out The European Debt Crisis is the fragility of the economies of the member countries against the global crisis. Besides, the countries which drag the whole Europe into a deep crisis are Greece, Ireland, Portugal and Spain. However; the main reason that drags Ireland into the crisis is the disvaluation in residential sector. However, the situation in Portugal has different aspects when we compare it with the other countries. First of all, the financial problems in Portugal did not appear with the crisis of 2008. It has been continuing for years. Secondly, it is not as serious as the other countries. As Ireland, Greece and Portugal; Spain has been affected by The Global Economical Crisis in 2008. Besides, at first the economic constriction coming with the economic crisis affected the real sector factors, because most of the debt stock was in private sector. Therefore, the main reason of the high rate of unemployment in Spain can be explained with this. Greece has been struggling with the economic crisis emergent in the last term of 2009 depending on the high public debt and foreign debt. Despite Greece has a small share as economically in EU, the debt crisis appeared in Greece turned into The European Debt Crisis at the very time. While it was being discussed how to overcome the crisis in the countries who were in debt, The President of EU in December 2012 announced the bankrupt of Greek Cypriot State. In this study, it is analysed how the 2008 Global Economic Crisis turned into The European Economic Crisis. The economies of Greece, Spain, Portugal and Ireland are examined and it resulted in that these countries has the biggest shares in the forming of The European Debt Crisis. The precautions taken against the crisis lost their efficiency across the macroeconomic disequilibriums coming from the past of those countries and it was seen that the reforms and bailouts applied did not give result. It is provided that the economical recoveries in Europe only can be seen after the year 2014.