EURO SOVEREIGN DEBT CRISIS

BY Ashish kumar singh Pramod kumar Krishna kumar Rajan Saptarishi

EURO SOVEREIGN DEBT CRISIS

Ongoing financial crisis -impossible for some countries in the euro area to refinance their government debt. From late 2009, fears of a sovereign debt crisis developed among investors as a result of the rising government debt levels around the world

Spain
Fourth largest country in Europe after Russia, Ukraine and France. Decentralized economy Mixed capitalist economy Contribution to GDP
Service 70 Manufacturing industry Agricultural 20

Reasons of crisis
BUDEGATRY DEFICIT CURRENT ACCOUNT DEFICIT POOR ECONOMIC GROWTH POOR GOVERNANCE SKYROCKETING OF UNEMPLOYEMENT LACK OF CONTROL ON FISCAL AGENDA AND POLICIES ALREADY ENTERED IN RECESSION

IBERDDOLA AS INITIATIVE FOR CORPORATE GOVERNANCE

Best practices of spain corporate governance. Regulated from March7,2012 Best 6th corporate governance in the world. Known as IBERDDOLA Allowed to generate value for 40,000 minority and institutional shareholders increase their profits between 55-60 per in recent year..

How it got started?

Maastricht treaty Inflation rates, interest rates, Government deficit Decrease in long term interest rates Construction market plummated

Banking system
Cajas -24000 Controlled by politicians One caja bailed out Decrease in credit rating Investors confidence plummated

Current spain
Unemployment 25% Public debt was 78% of GDP GDP growth ratio is 11%

IBERDDOLA AS INITIATIVE FOR CORPORATE GOVERNANCE

Best practices of spain corporate governance. Regulated from March7,2012 Best 6th corporate governance in the world. Known as IBERDDOLA Allowed to generate value for 40,000 minority and institutional shareholders increase their profits between 55-60 per in recent year..

Survival is crucial
Model of weaker economies If bailout, ailing economies will get effected. Also a representative of larger economy entire Eurozone will be in jeopardy

Government steps
Austerity measures Cahas merging with banks Freezing public sector workers' salaries and reducing departmental budgets by 16.9%. Cut in subsidies, public wages To raise its national sales tax alcholic,fuel,tobacco to raise $11 billion raised income and property taxes, and announced cuts in spending on health care and education. The forecast is for the economy to shrink 1.7 percent this year. Foreseeing economy, business and laws also make ways to lay and shad people

Euro zone crisis affect in India

Impacted the Indian economy through deceleration in exports. widening of trade and current account deficit. Fall in the value of Indian Rupee, stock market decline and lower economic growth. The cash flow from FIIs and FDI will decrease. Banks will not be directly affected.

conclusion
Spain still remains in a dire financial position When the real estate market collapsed, it brought the entire Spanish economy down with it. Spain will survive this financial downturn and will hopefully learn from its mistakes.

THANK YOU