An expression that emerged in the wake of the Greek crisis in 2009, meaning that some member countries of the European Monetary Union are no longer able to rebalance their over-indebted national budgets without outside help. – With the European Financial Stabilization Facility established in 2010 and the European Stability Mechanism formed thereafter in 2011, intra-EU rescue umbrellas were put in place. The ECB intervened in various ways. It lent generously to the crisis states and their banks and repeatedly provided them with liquidity. As long-term (noncurrent) measures against the root causes of the crisis, the Fiscal Compact and the European System of Financial Supervisors were established. – See automatic adjustment, bail-out, blame game, blood toll, euro bonds, European Debt Agency, euro crisis, European Monetary Union,
Fundamental error, European Monetary Fund, expropriation, cold, contingent, debt, EMU explosive, ECB balance sheet, financial stability, gold sacrifice, Grexit, peer pressure, fiscal consolidation, kindergarten argument, neuro, policy bracket, policy delay, repatriation effect, rescue, Rogoff study, shadow state, sem, European, solidarity, financial, public debt pressure, Stability and Growth Pact, fundamental error, governance framework, transfer union, excess demand, economic, constitutional article one, debt-productivity-linkage, treaty compliance, growth-debt fact, historical, forced expropriation. – Cf. ECB Monthly Bulletin of November 2012, p. 28 f. (impact of sovereign debt crisis on refinancing conditions), Financial Stability Report 2012, p. 18 ff. (sovereign debt crisis has widened and worsened; overviews; crisis of confidence triggered by it), ECB Monthly Bulletin of April 2013, p. 24 ff. Liabilities of individual euro member states vis-à-vis other countries; overviews; trends), BaFin Annual Report 2012, p. 19 ff. (good summary presentation; overviews), Financial Stability Report 2013, p. 21 ff. (detailed presentation of the European sovereign debt crisis; overviews, p. 33: list of sources), Deutsche Bundesbank Monthly Report of January 2014, p. 41 ff, (overcoming the crisis of confidence triggered by high debt; many overviews; references), ECB Monthly Report of February 2014, p. 36 ff, (assessment of the sovereign debt crisis with regard to financing conditions in the course of the lending survey; overviews).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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