¶ … European financial crisis a nutshell? (190-200 words) Who responsible crisis, ? a. In financial sector (100-110 words) b. In government sector (100-110 words) What recommendations fix ? (90-100 words). Causes of the European Financial Crisis

European Financial Crisis Causes

There are several factors that determined the financial crisis in Europe. The most important causes of this financial crisis are represented by the situation of the Greek public finances, but also the situation of the Spanish real estate sector. The problems in these countries have not been solved, which determined several consequences on the eurozone.

The Greek economy represents 2% of the eurozone's economy. Therefore, its influence on the eurozone was reflected by its public debt. In addition to this, the recovery value of the country's public debt was of 50%. This leads to the significant depreciation of the euro.

The problems in Spain are also of great importance. The officials...

This situation leads to problems in other countries also. This is the case of French, German, and other banking systems that are exposed to the Spanish real estate sector (Noord, 2009). In order to improve the situation, the loans that many developers got from the Spanish banks are likely to be written off. However, this does not mean the country's banking system has solved its problems.
Responsibility of the Crisis in the Financial Sector

It is obvious that most of the problems in Europe are determined by the financial sectors in countries like Spain and Greece. The problems in these cases are that these banking systems loaned too much money to their clients. The situation is similar to the housing bubble in the U.S. Therefore, the responsibility of the crisis in the financial sector should be attributed to bank managers. This is because bank managers establish the strategy of the crediting that…