Assignment on English for economic purposes iv Instructor: Theodora Tseliga Academic year: Anastasios Papanikolaou 2492 (G.L.) Sevastianos-RafaIl Nikitas-Streicher 2477 Konstantinos Koutlas 2430 Katerina Tzereme 2531

 1.Introduction  2.World crisis  2.1 The effects of the global crisis in the European union  2.2 What led to the European crisis?  3.Euro as common currency  3.1 Positive and negative aspects  4.Future prospects  5.Conclusion

 What is a crisis ? Crisis is a period of time in which a system doesn’t function properly, signaling the need for help  What is an economic crisis ? Economic crisis is a length of time that the economy functions poorly. The value of economic organizations is very low,production is very low and sometimes it doesn’t meet the level of demand

 Started in 2008 in the US  Causes of the financial crisis: 1)The real estate bubble in the US 2)The collapse or the risk of collapsing for some financial institutions (e.g. Lehman Brothers,Bear sterns)  What caused the housing bubbles in the US ? 1) Low interest rates in the US 2) Big increase of savings from rising economies

 Fiscal deficits and debt continuous increase  Unemployment increase  Discontent among the citizens

 Opening the boarders to third world countries  The flourishing of free competition  Different expectations and requirements between countries that are members of the European union These are the main factor that led to the european crisis

 Euro was Invented in 1999  Now 17 of 28 countries use it as their currency  More than 330 million people in europe use it as their currency

 The lack of exchange rates between countries which have euro as their currency makes the exchange of products easier  Consumers are able to compare the real value of products  Enhances the feeling of unity among europe

 As countries don’t have their own currency they lose the option of a devaluation.  There are difficulties in dealing with different problems at the same time with the same policy  It is easier for the crisis and bank panic to be spread among Eurozone

 Besides the uncertainty significant progress has been noticed  Developing economies have started to contribute in the effort to exit the crisis  Although unemployment is beyond 24% in some countries of the eurozone it is said that within a decade it will drop to 16%  By analyzing the causes of the crisis in depth eurozone is made stronger and less vulnerable to future problems

 After the crisis people became more careful with their investments  Citizens became more careful in their political choices  Eurozone’s main target is to strengthen the weaker economies and keep the strong economies at the same level