MBA Managerial Economics: Evaluating European Crisis and Troika's Role

This report examines the European debt crisis, focusing on the roles and interventions of the Troika (European Commission, ECB, and IMF) in supporting countries like Greece, Ireland, and Spain. It explores the causes of the crisis, including government overspending, housing bubbles, and structural weaknesses in the Eurozone. The report details the impact of the crisis on specific countries and the conditions imposed by the Troika for financial assistance, such as economic reforms and austerity measures. It also discusses the Troika's efforts to stabilize the economies and prevent bankruptcies, highlighting the challenges and consequences of the crisis and the interventions.

Running head: MANAGERIAL ECONOMICS
Managerial economics
Name of the student
Name of the university
Author note

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Table of Contents
Introduction................................................................................................................................3
Central Problem.........................................................................................................................3
Aim of the Report.......................................................................................................................4
Literature Review.......................................................................................................................5
The situation of the economic crisis in the European countries.............................................5
Impact of Crisis in Greece......................................................................................................6
Impact of Crisis in Ireland......................................................................................................7
Impact of Crisis in Spain........................................................................................................7
Interventions of Troika...........................................................................................................8
Increase in the Government debt..............................................................................................10
Inflexibility of the monetary policy.........................................................................................10
European Crisis and its further effect.......................................................................................11
Intervention made by Troika....................................................................................................12
Conclusion................................................................................................................................21
Reference list............................................................................................................................22

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Introduction
The economic recession along with the financial crisis seemed to have a huge impact
on the countries within the European Union or the Eurozone. Countries such as Spain,
Ireland, Netherlands and Greece were some of the most affected areas. It took combined
efforts of the European Union, IMF and ECB for structuring a mechanism which are aimed at
offering the financial aid and guidance back to the path of recovery for the largely affected
countries. The report in the below section states the reasons behind the financial crisis in the
European crisis and the result after the crisis.
Central Problem
The European debt crisis took place when the several countries of Europe experienced
the collapse of the financial institutions. The crisis took place when the financial institution of
Iceland had collapsed. The debt crisis resulted in loss of confidence of the business and
economies of Europe. The crisis also took place with the evolution of the great recession. In
order to fight the crisis the government started to raise tax and also lowered the expenditure.
The government expenditure also started to increase because of the crisis. The Eurozone
states in the time of crisis therefore have been rescued by the sovereign bailout programs
which had been jointly provided by the International Monetary Fund and European
Commission. The European States at that time were unable to pay back their huge amount of
government debt. Therefore, the European Central Bank and the International Monetary Fund
had helped them during the crisis. The ECB and IMF together formed Troika which intended
to bailout the countries that have been affected by the European crisis.

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Aim of the Report
The aim of the paper is to find out how the countries affected by the European crisis
and how the European Commission, IMF and ECB have financially supported a large number
of countries. The paper also states the situation during the global recession which is also lead
to financial crisis in Europe. The research also shows the changes in demand and supply
which have affected the countries during the crisis. After the introduction of the research
questions, the paper further discusses about the situation of the economic crisis in the
European crisis. It also states the various impacts of the crisis specially in Greece, Spain,
Ireland and Netherland. The paper also states about the housing scheme of Netherlands.
Therefore, the research questions will be: Why did Spain, Ireland, Greece and Netherlands
need financial support?
The sub questions which will be following the research questions are
How was the starting situation of the crisis?
What was the impact on the Netherlands housing market deductible interest amount declines?
How Ireland reacted when there was a massive increase in VAT?
What happened to Greece when the transport license had been abolished which was imposed
on the citizens of the economy of the country?
What was the general pay cut for Spain?
Literature Review
The situation of the economic crisis in the European countries
The recession of Europe is the part of Great Recession which stated from United
States. The crisis had started spreading I Europe rapidly and affected a lot of countries which
were already in recessions. The recession took place only in Europe and most of countries

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had suffered from economic setbacks. The recession in Eurozone have affected the European
countries. Most of the countries in this particular region wet into complete financial crisis and
the governments who are the main victims of the whole crisis. The rise in the global savings
had mostly resulted by the high growth of the developing nations which will be entering in
the global capital markets. The financial crisis mostly resulted from the rise in the economic
bubbles across various sectors of the global markets.
The global financial crisis between the year 2007 and 2012, saw several economies in
the region to plunge into complete financial c rises where governments and banks were the,
main victims of the whole crisis. There also had been a significant rise in the savings which
availed to the potential investors for investment. The rise in the global savings had been
partially caused by the high growth in the developing nations which will enter in the global
capital market which will be offering an alternative for the investors who were searching for
high yields that those availed by the US Treasury bonds. The European financial crisis as
therefore resulted of the bursting of the bubbles from the housing market of the banking
industry across Europe as the asset prices will be declining the way.

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Figure 1Real GDP and price level.
(Source: Parkin 2016)
Impact of Crisis in Greece
The crisis in Greece had started taking place in the late 2009 which had been also
triggered by the Great Recession. The crisis in Greece was accompanied by the great
recession, structural weakness of the economy and inflexibility of the monetary policy. The
crisis also took place since t66he previous data of the deficits had been not reported by the
government itself. In the year 2009, the government debt had been further raised from
€269.3 bn to €299.7 bn. These factors had led to crisis in Greece. They crisis had also led to
rise in the cost of the risk insurance on the credit default swaps. The crisis in 2008 and 2009
had been the world’s worst financial crisis in almost more than eighty years which lead to the
global recessions. Most of the European countries had huge amount of government debt,
however only Greece had been worsely affected with the spiralling spending deficit. Greece
was known to borrow much more money than it could make in revenue with the help of

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taxes. The country was then frozen out of the bond markets. After the crisis, it had been
found out that most o9f the banks along with the foreign investors have sold their Greek
Bonds along with the holdings. After the Wall Street had imploded in the year 2008, Greece
was known to become the centre of Europe’s debt crisis. By the year 2010, it was moving
towards bankruptcy which lead to the financial crisis.
Impact of Crisis in Ireland
The crisis of the Irish sovereign debt arose from government overspending. The crisis
of the debt arose due to the state guaranteeing the six main Irish based banks who had
financed the property bubbles. The banks of Ireland had known to lost 100 billion euros
where most of them were related to the defaulted loans to property developers along with
homeowners. The Irish economy known to have collapsed in the year 2008. In the year 2010
the rate of unemployment rose to 14 percent and on the other hand the surplus went to deficit
of 32% of the gross domestic product in the year 2010.
Impact of Crisis in Spain
Spain was having a low debt when compared to all other advanced countries. The de bt was
kept low by largely huge amount of the tax revenue which had been taking place from the
housing bubble. When there had been bubble bursts Spain had spent huge amount money for
bank bailouts. Due to huge amount of the bank bailouts, there had been rise in the economic
downturn which also increased the deficit of the country. After that Spain became the prime
concern for the countries in Europe where it had to face huge difficulty in the bon markets.
Spain was suffering with 27% unemployment and the economy was shrinking 1.4% in
2013.The effect of the depression of the economy had been felt variably across European
countries as a result of varying factors for each of the country. Many f the countries had been

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suffering huge consequences as a result of the weak regulatory changes within the economies
or consequence of failure for taking any kind of precautionary financial measures which will
be buffering the economies from the impact of the crisis. The countries will be buffering the
economies from the impact of the crisis.
The Troika demanded that these countries should be executing a number of reforms
for stabilizing the economies on which they will be financially assisting for implementing the
reforms. The financial crisis in the eurozone was a result of the growing trade imbalances as
most of the countries had witnessed decreased deficit in the balance of payments as they will
strive for entertaining, he growing interest for investing the Giant Pool of Money which will
be available in the international market of money. In case of Ireland, the banks used to lend
money for property developers which will result in huge property bubble. The housing
market of Ireland also known to grow at a huge rate where the price rose up to three hundred
percent by 2006. Along with the bubble, the price of the housing will be seeing a steep fall
where over 30 percent fall in the house prices takes place by 2008. The government of
Ireland and the taxpayers will be taking a swift measure of bailing out the private investors
instead of recommending for a bail in those cases where the investors shoulder the risk and
accompany losses. On the other hand, for Greece the public wags have known to get doubled
for about ten years. Thereby had been also huge growth in the banking system which will be
creating debts for global investors on several occasions.
Interventions of Troika
With the onset of the European debt crisis which had known to originate in Greece,
spread to other countries in the Eurozone. This took place in unsustainable fiscal positions..
the crisis mainly affected the countries of Ireland, Italy, Cyprus and spain. Troika had been
formed of the European Commission (EC), the European Central Bank (ECB) and
the International Monetary Fund (IMF).The European Troika is known to represent the

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European Union in the foreign relations by concerning the security and common foreign
policy. Since the year 2009, there had been the European debt crisis that have been taking
place in the European Union wher4e several countries like Greece, Ireland and Spain were
unable to pay the government debt. There had been various reasons for the debt.
The European debt crisis which ca also be termed as the financial crisis which made it
quite difficult for some of the countries in the euro area for repaying or re financing t5he
government debt. The crisis mainly resulted from the structural problem of the Eurozone
along with the combination of some complex factors. The factors might include the
globalisation of the finance, easy availability of the credits which also lead to high risk
lending and borrowing practices. The Eurozone crisis also lead to international trade
imbalances and also real estate bubbles. The crisis was accompanied by the collapsing of the
financial institutions along with the huge government debts. After the collapse of the Icelid
bank8ing system. The debt also led to the loss of confidence in European business as well as
in economies. The European debt crisis started in the year of 2009 when the members of the
Eurozone such as Greece, Spain, Ireland, Portugal and Cyprus were unable for repaying or
refinancing the government debt in order to bail out their banks without the help of the third
party financial institutions. The reason for the crisis was mostly due to the financial crisis
and the great recession. As the amount of level of deficit was so high that the confidence of
the of the investors were eroded and the bond spreads rose to high level. Some of the4
affected European countyrie4s started to raise their taxes and slashed expenditures in order to
combat the crisis. These lead to social upset within the borders along with a crisis in
confidence in leadership in several European countries. Several countries including Greece,
Portugal and Ireland had to downgrade their sovereign debt in order to junk status which
worsened the fear of the investors. The European crisis lead to the drop in the annual growth
of the global trade. The cause of the financial crisis is usually7 attributed to the markets and

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to the regulations which will be targeting the protection of the consumers and financial
transparency. The bond markets were also known to perform poorly affecting the nations
since the rising yields means that the prices are falling. One of the reason of the European
crisis was the
Increase in the Government debt
The members of the European countries had signed a treaty in the year 1992
promising to limit their deficit spending along with the debt levels. Although some of the
countries in Europe failed to abide the guidelines by side stepping their practices and also
ignoring the internationally agreed standards. This kind of complex structure had been
developed by the investment banks of the United States. In countries such as Ireland and
Spain the low rate of interest had also led to the housing bubble which known to burst at the
height of the financial crisis. The debt crisis took place only because of the h7uge social
welfare spending. The global slowdown along with the huge financial crisis had been one of
the reason behind the European debt crisis.
Inflexibility of the monetary policy
The members of the Eurozone have known to establish a single monetary policy
which will prevent any single member from acting independently in the market. This type of
monetary policy will also not allow for creating Euros for paying the creditors and estimate
their risk of default. As they also share similar currencies with the trading partners, they will
not devaluing their currency as their trading partners. These countries will then not be able to
devaluate their currency in order to make the exports cheaper which can also lead to improve
their balance of trade, rise in the gross domestic product and higher tax revenues in nominal
terms.

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In the year 2010there had been a rise in anxiety about the rise in huge national debt
where lenders known to demand higher amount of the interest rates from several countries
with high level of debt , deficits as well as the current account deficits. For this reason it had
made quite difficult for most of the countries of the Eurozone for financing the existing
government debt in those cases when the growth rate of the economy had been quite low and
high percentage of the debt was in the hands of the foreign creditors both in the case of
Greece and Portugal. In order to fight the crisis the government at that point have started to
raise the taxes and lower the expenditures which had led to the social unrest. In countries
where the budget deficit and the sovereign deficit have rose sharply there had been a presence
of crisis of confidence which had taken place as a result of widening of the bond yield
spreads.
European Crisis and its further effect
The crisis in Greece had started taking place in the late 2009 which had been also
triggered by the Great Recession. The crisis in Greece was accompanied by the great
recession, structural weakness of the economy and inflexibility of the monetary policy. The
crisis also took place since the previous data of the deficits had been not reported by the
government itself. In the year 2009, the government debt had been further raised from
€269.3 bn to €299.7 bn. These factors had led to crisis in Greece. The crisis had also lead to
rise in the cost of the risk insurance on the credit default swaps. The crisis in 2008 and 2009
had been the world’s worst financial crisis in almost more than eighty years which lead to the
global recessions. Most of the European countries had huge amount of government debt,
however only Greece had been worsely affected with the spiralling spending deficit. Greece
was known to borrow much more money than it could make in revenue with the help of
taxes. The country was then frozen out of the bond markets. After the crisis, it had been
found out that most of the banks along with the foreign investors have sold their Greek Bonds

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along with the holdings. After the Wall Street had imploded in the year 2008, Greece was
known to become the centre of Europe’s debt crisis. By the year 2010, it was moving towards
bankruptcy which lead to the financial crisis. The debt crisis resulted in the wake of the Great
Recession around the year 2009. In the 20th century the economy of Greece had known to fare
well with high growth rate along with low public debt. Before the year 2007, it was known to
be the one of the fastest growing in the Eurozone. When the world economy had been hit by
the financial crisis in the year because 2007 and 2008, Greece had been hardly hit by the
financial crisis because of the main industries such as shipping and tourism which are known
to be sensitive to the changes in the business cycle. The government therefore used to spent
heavily in order to keep the economy functioning. For this reason the debt of the country had
increased accordingly. In the year of 2009, the borrowing of Greek started to rise slowly. By
the year 2010, the government of Greece requested a huge amount of loan of around €45
billion from the European Union and the International Monetary Fund in order to cover the
financial needs. The stock markets in the worldwide and the euro currency will be declining
in response to downgrade.
Figure 2 Producer surplus and consumer surplus

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( Source: Parkin 2016)
Intervention made by Troika
Since the conditions of economy started to deteriorate the formation of Troika took
steps for advising the affected countries on the necessary steps for rescuing the economies.
Most of the countries known to take complete transformation in the economies which
comprises of the fiscal stiff regulation as well as monetary regulations. In case of Ireland, the
government of Ireland known to have raised the amount of VAT by 23% which implies that
the reforms were widely interpreted and there was presence of both negative as well as
positive impacts.
Figure 3 Movement of demand
( Source: Parkin 2016)

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The impacts includes a rise in the VAT which can be viewed as driving the efforts of
generating huge amount of the revenue of the government which increased the overall
income of the state. On the negative impacts include that the increase of 2% VAT was known
to have an effect on the half of the goods and services in Ireland. A rise in VAT on the
services will be impacting the households. This also mean that the banks will see an increase
in the cost of some of the third party services which they will be receiving as a result of the
increased VAT on the services. This particular cost will be directly passing in the consumers
which will also affect the households. The increase of the value added tax can also limit the
purchasing power of the people. For analysing the impact efficiency it can be said that the
rise in VAT of country will be leading to the rise in the revenue of the government. The
reason behind this is that VAT is a type of indirect tax which cannot be avoided by the
citizens and by this way the government can earn huge revenue. The VAT is the form of the
indirect tax which is forced on the services as well as on the goods. A rise in VAT will lead
to rise in the cost on supplier. It can be said that an increase in VAT will lead to rise in the
cost on supplier. Therefore it will also make the supplier curve shift to the left. The new
equilibrium quantity also gets reduced from Q1 to Q2. The price that the consumer pays will
also rise from P1 to P2. Therefore, the consumer surplus gets decreased. The loss in the
producer surplus along which the consumer surplus is the revenue that is collected by the
government. One of the parts also becomes the deadweight loss. While analysing in the
general way it can be said that a rise V AT will have the following impact on the people of
Ireland where in case of inflation which an attempt to raise prices will be reducing the real
amount of services and goods sold in some prices and adjustments in employment and
production. In case of income effect Vat is known to be the regressive tax which generally

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takes huge proportion of the lower incomes than the higher ones. In case of consumption,
due to the income effect the spending patterns of the people will be going to change. There
will be a tendency for increase in saving rather than spending for a lower aggregate demand.
There will be different kinds of impact for consumers as well as for suppliers.
Impact of consumers: in case of this type of situation, a rise in VAT by the government of
Ireland the sales tax that had been passed to the consumer will have a different effect of
shifting of demand curve to the left which will also indicate a reduction in the demand for the
product. The reason behind this is that the price will be increasing. In this case, the demand
for the products will not be changing at all. The new equilibrium point will be occurring at
the higher price and in lower quantity. The shift in the demand curve is equal to the amount
of tax. This will take place because change in the demand will be equal to the change in price
which is usually caused by tax.
Impact to the sellers: the VAT that has been imposed on the suppliers will lead to shift
in the supply curve to the left which will lead to the reduced efforts of production. The
demand for the products will also not get changed. Producers will be incurring huge tax cists
and for that reason, there will be a new equilibrium point which will move up to the demand
curve at a higher price as well as to the lower quantity. The Ireland citizens will be suffering
from the rise in VAT since they need to pay higher prices for the similar products. The
business firms and the investors also will be suffering as they have to deal with the problems
of increasing the cost of production.

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Figure 4 Effect of Tax
(Source: Parkin 2016)
Greece
Since Ireland have decided to increase the VAT on the services and products, Greece
will be choosing a different strategy altogether and it will be monopoly. It will be also known
to abolish the license fee for the citizens and will be having an effect on the increasing
demand on the driving services as more people will be enrolling for the driving lessons and
acquire a free transport license. When the quantify demanded changes as a result of conge in
price it will be known as the change in quantity demanded. The policy will be going to have a
positive impact on the economy of the country. It will be reducing the annual revenue of the
government as they need to cut one of their main sources of revenue. The policy will be good
for the government since it will be transforming the industry from the legal monopoly market
to the market of perfect competition. For this reason, it will be opening other avenue sin
order to raise taxes when the transport sectors will be booming. When the transport sector
will be booming, the consumption of oil will be stabilizing and citizens will be getting

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employed as it will be removing barriers that will not allow others to join the industry. It will
form a legal monopoly market in which both entry as well as competition will be restricted by
gaining public franchise. It will also be known to encourage both the local as well as the
foreign investors for investing in the country since the cost of transportation will be getting
decreased along with the cost of production and hence the revenues of the company will also
be improving. The development in the revenues of the institutions in Greece will also be
translating to an increase in the revenue of the government. The revenues will then be
collected by the government and therefore can be used to help the services with the long
standing deficits. The transport license will also get abolished as seen as n an economic
incentive by the public whose economic activity will be either directly or indirectly get
affected by the transport economy. The actions of the government will make its citizens
more open and will also allow the government to increase other forms of the taxation.
Therefore it can be concluded that people might invest which will help in improving the
infrastructure and network of the roads. When a particular country will be developing the
infrastructure many industries will be blooming with lower cost and the growth of the
industries will help in creating more jobs and will also help the government of earn more
revenue. It will be also motivating the foreign investors who will be viewing Greece in an
attractive location while doing business. The investors will also decide to help bail out the
cunty by buying treasures bonds in order to protect their investments within Greece.
Spain
Spain had been resorted a general pay cut of 10% across its employed citizens were
with the pay cut it implied the disposable income in Spain would get reduced and it will be
also directly impacting the demand of the market. The demand will be shifting to the left and
the price will be decreasing along with the quantity and the equilibrium will also get
decreased. It has been known that the household spending is like the backbone of the service

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oriented economy of Spain. It had been known to shrunk by more than 11 percent since the
burst of the property bubble which took place six years ago. With the reduction of wage there
will be reduction in the household spending where the sustainable growth can take a lot of
years. With the reduction of wage there will be also a reduction in the household spending. a
rise in VAT by the government of Ireland the sales tax that had been passed to the consumer
will have a different effect of shifting of demand curve to the left which will also indicate a
reduction in the demand for the product. The reason behind this is that the price will be
increasing. In this case, the demand for the products will not be changing at all. The new
equilibrium point will be occurring at the higher price and in lower quantity. The shift in the
demand curve is equal to the amount of tax. This will take place because change in the
demand will be equal to the change in price which is usually caused by tax. In order to
conclude therefore it can be said that the government in case of short term will be benefitting
from the pay cut as it will be trimming the wage bill which will also reduce the expenditure
and will also afford to put aside enough n money for financial obligations to the lending
institutions. It will be also losing in the long term since the citizens will be losing due to the
fact that general pay cut will be reducing the income which will be forcing them to put more
effort when they want to continue to enjoy their living standards. And this will be affecting
the development of the country.

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Figure5 economic growth
( Source: Parkin 2016)
Netherlands
In case of Netherlands sit is known to opt for the liberalization of the housing market
by limiting the deduction of the mortgage interested where the current deductible interest
amounts €10.000, - per year per household. The deduction will drop to € 5.000, - per year per
household. A million households use the mortgage interest deduction.
Both the supply as well as the demand curve will lead to an increase in the demand
for housing with reduction in the supply required for satisfying the existing demand. For this
reason, the housing prices will be falling. In Netherlands, it is known that the Dutch housing
market will be going to recover without any kind of regional difference. Spiraling the price of
house in the city will be attributable to scarcity pricing where very few houses will get to
satisfy their demand where the scarcity will be mainly due to imposition of the government
control. It has been known that more and more buyers will also be contributing to the funds.

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Migration to the cities is also leading to rise in demand for urban housing as well as supply is
falling in order to keep pace. This has also lead to shortage in the affordable housing in the
non rent regulated rental sector. It will be a kind of development which will be putting the
middle income earners in a compromised position in their efforts for acquiring new housing.
Supply in the non rent regulated sector will be growing slowly a result of planning
restrictions on the newly build developments. With the lack of planning, construction
capacity and the absence of effective incentives for municipalities as well as housing
associations. The best response of the government will be limiting the mortgage interest
deduction in case of Netherlands. The shrinking of the interest returns to the Central Bank
will be declining from €10 Trillion to €5 Trillion per year from the market. The government
in this case will be aiming for stimulating the House mortgage market whose return will be
going to shrink. The households will also start to demand huge loans where the cuts in rate by
the central bank implies a reduction in the monthly mortgage repayments of the people. The
government only aim to try for stimulating the house mortgage market and its return will be
shrinking. Households will start demanding more loans and cut in rate by the central bank
means a reduction in peoples monthly mortgage repayments and people on tracker mortgages
where repayments will be varying with the base rate of central bank. Someone with a 25-
year £250,000 repayment tracker mortgage paying 2% interest could see their monthly
£1,100 repayment fall by around £30 if rates do go down to 0.25 percent.

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Figure 6 Inefficiency in housing market
( Source: Parkin 2016)
Netherlands housing market
In case of Netherlands, all the interests payments can be deducted for about thirty
years. The deduction in the mortgage interest rate had been the major political issue. The
reduction in the mortgage interest is a kind of deduction which allow the homeowners for
deducting the interest they pay on any loans for building homes, purchasing or making any
kind of improvements. The deduction of the mortgage interest can also be taken on loans for
the second homes. It can be taken only when mortgage of the homeowner is securing a debt.
The reduction in the interest paid on a loan can be secured while buying the first or second
home. It usually includes home equity loans, purchase loans and home equity lines of credit.
The deduction will make the loans less expensive in nature.

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Figure 7 Deadweight loss in housing markets
( Source: Parkin 2016)
The prices of the houses known to have dropped by 20% as a result of the economic
crisis. Most of the houses known to have property value which is much lower than the price
paid for. For stimulating the housing market, a kind of temporary tax free donation scheme
had been introduced by the government. In this case, the parents can donate a tax free
amount of € 100.000, to their children. That amount can be used for renovation of houses or
for lower amount of mortgages. The donation scheme was known to be quite popular.
In order to stabilize or stimulate the market for housing, the government can
implement several action plans. It can be said that there are lot of disadvantages of the grant
provided by the government. As it can be already seen that the donation scheme had led to
the huge income loss for the government. It have also been found out that the number of
donation were also high leading to high income loss for the government.

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Conclusion
The studies have also contributed to the fact that the economic crisis of Europe
happens with the structural inadequacy within the euro system of the system presents a
monetary union kind of platform so that there is no reinforcing of the fiscal union. Countries
in the eurozone are also obliged for adopting the common currency without accompanying
the treasury in order to foresee the regulation of the currency. The Euro system which is
known to be the monetary authority of the eurozone will be going ahead for establishing the
unitary monetary policy and will also alienate he member countries for their financial
independence. Member countries will also not be able to create any euros for regulating the
balance of payments as they will not be devaluating the currency for making their imports
cheaper. As the monetary practices in eurozone lacked the sufficient regulatory structure
among the states, the banking system of Europe will be coming under the scrutiny for the
failure in order to maintain the positions in the monetary market of Europe.
Lessons learnt
The above studies shows that the economic crisis had greatly affected the countries of
Europe. It has also sown how the Troika helped in saving them from the crisis. The event also
expected to see huge bank withdrawal in weak eurozone such as Spain and Greece for
plunging in to further debts and insolvency which will also accompany the capital flight to
the eurozone with strong economic stabilities from those who have stated to witness financial
crisis

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