THE CONSEQUENCES OF SOUTHERN EUROPEAN DEBT CRISIS AND THE MECHANISMS FOR ITS OVERCOMING
Abstract
Purpose. The aim of the article is to highlight the consequences of southern European debt crisis and identify effective the mechanisms for its overcoming. Methodology of the study. General scientific methods were used in the research process (for the study of the theoretical foundations of the mechanisms to overcoming the consequences of the debt crisis); analysis (in determining the dynamics of economic indicators of the country); systematic and comparative analysis (for comparison of anti-crisis policy of southern European countries). Findings. It has been revealed that the main reasons for the emergence of southern European debt crisis are: failure to comply with “problematic” countries of the Maastricht criteria; high budget deficit; the growth of foreign debt that significantly higher than the critical level; capital flight abroad; disparities in economic development of the EU member states. Another reason for spread of the crisis is the loss of investor confidence to the Eurozone countries. Bonds Italy, Greece, Portugal contain significant risk that prevents the inflow of capital from other countries. The effects of the debt crisis, which include: reduction in the level of GDP, decline in production and rising unemployment are analyzed in the article. It has been established that decline in asset prices occurred in the Eurozone countries that was caused by the introduction of stringent credit conditions and the decline in international trade in this group of countries due to a significant decrease in the proportion of durable goods in trade turnover. The mechanisms for overcoming the consequences of debt crisis, the main ones are: structural reforms; financial innovations; partial privatization; debt restructuring. Originality. A comparative analysis of application of the mechanisms for overcoming the debt crisis of southern European countries has been conducted. Practical value. The obtained results of research aimed at overcoming the consequences of the debt crisis.
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