One of the most significant issues that has altered the financial and economic landscape of almost every European country is undoubtedly ‘The Eurozone Crisis’. The Eurozone crisis has had a turbulent impact on Europe’s international trade and the economic value of their common currency, the Euro. A better and comprehensive understanding of how the Eurozone crisis started and what it may lead to is explained by the video named, ‘The Eurozone Crisis Explained’, created by one of Australia’s leading trading and automated systems company, Investment Capital Systems, better known as ICS. It’s trading instruments are highly refined and efficient in their nature and empower people to get involved in the global financial markets.

The Eurozone is an economic and monetary union of seventeen European Union members, namely, France, Slovakia, Netherlands, Greece, Spain, Cyprus, Italy, Germany, Ireland, Portugal, Austria, Belgium, Estonia, Malta, Luxembourg, Slovenia, and Finland that have adopted the Euro as their common currency. The increasing rate of debt intake by a few of these countries, and the failure in their repayments, resulted in the severe Eurozone crisis, that has substantially affected their economic performances and domestic growth over the years. The video, ‘The Eurozone Crisis Explained’ effectively accounts the crisis’ major causes by closely examining the roles of Ireland, Spain, Greece, and Cyprus and the serious and immense impacts on the functioning of the European economy.

An abrupt fall in the prices of Irish property in 2007 caused its economy to collapse leaving the Irish banks with a deficit of €100 billion. The banks received a bailout of €67.5 billion by April 2011, but the high ratio of debts caused them to downgrade. As of 2013, Ireland’s debt is believed to be at its peak, 120% of the Gross Domestic Product.

Before the outbreak of the Eurozone debt crisis, Spain’s debt level was relatively lower than other advanced economies, but the unexpected burst of its property bubble lead it to receive several bailout packages. During the economic downturn in 2011, the government took austerity measures including substantial cuts in spending and vital increment in taxes so as to restore the economic health. However, the public demanded a revolution that resulted in riots and protests, making it clear that Spain would need more financial support to rejuvenate its economy. Spain’s debt to GDP is expected to hit 90% during 2013.

Greece was one of the fastest growing economies in the Eurozone but the collapse of its tourism industry caused it to receive bailouts of €110 billion in 2010 and an additional €130 billion in 2012, followed by a long period of civil and political unrest. Many experts suggested that Greece should withdraw from the Eurozone entirely, and since then its debt level has been reduced from €350 billion to €240 billion, however, the debt is still expected to hit 170% during 2013.

The video further highlights the financial turmoil in Cyprus that caused it to receive bailout packages to support its banking industry and the austerity measures taken by its government. Cypriot debt to GDP has rapidly climbed from 49% to 93% in a short number of years.

Lastly, the video effectively explains the role of Brussels in turning the Eurozone into a closer fiscal union. It will have the authority to oversee the national budgets and impose harsh economic reforms to struggling countries.

Interested individuals can watch the video, 'The Eurozone Crisis Explained’ by Investment Capital Systems (ICS) at http://www.youtube.com/watch?v=8r-1uijMS8A.

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