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provide a peer response to the following discussion:

Point out what you perceived to be the strengths of the initial posting along with supporting rationale.

Identify specific opportunities for improvement with regard to the content in the initial posting. Furthermore, you should provide supporting rationale and or sources for your stated position

The European Sovereign debt began in 2008 with the collapse of Ireland's banking system, followed by several European countries, for example Greece's debt reached an all time high of 113%, almost twice the limit of 60%. European Countries shared the same common currency the Euro, and the fact that the Globe was experiencing a financial crisis only added to the European sovereign debt crisis.

Like I mentioned above European countries shared a common currently which is the Euro. However, each country still maintained control of their fiscal policies which governed their spending and borrowing. This allowed countries like Greece to high amounts which resulted in Greece having debts in over 113%. Leaving the country with inability to pay the debt back.

According to an article by The Balance, countries borrowed excessively because there was no penalties for violating thedebt-to-GDP ratiosset by the EU's founding Maastricht Criteria. (AMADEO, 2022).

European countries received help from World BankLinks to an external site.and International Monetary Fund (IMF) and Germany, with Germany being the only European country with a strong economy, Greece, and other European countries received bailouts in order for their countries to start recovery, according (Team, 2021)

As a result of the European Sovereign debt crisis there was high unemployment rates, greater income inequalities, and an increased risk for people being at risk for poverty.

Slowly European countries were on the road to recovery however with Coronavirus European countries found themselves again struggling, to stay out of the red.

References

AMADEO, K. (2022, Januarry 20). Eurozone Debt Crisis . The Balance , p. 2.

Team, C. (2021, February 3). European Sovereign Debt Crisis. CFI, p. 1.

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