eurozone

• The Eurozone:

  T​he European Central Bank distributes notes and coins, sets interest rates, maintains a stable financial situation and manages the foreign currency reserves.
• what have govt agreed on in the eurozone?

  governments agreed not to exceed a fiscal deficit of more than 3% and not to have a National Debt of more than 60%.
• conditions for monetary union successful?

  free movement of labour, capital mobility and wage and price flexibility, fiscal transfers from one country to another when a country is performing poorly, and countries should share the same business cycle.
• What is the main problem for the EU mentioned in the study material?

  The lack of automatic fiscal transfers
• Which financial crisis is referenced in the study material?

  The financial crisis of 2007-08
• How would automatic fiscal transfers have helped Greece, Spain, and Portugal?

  They would have provided financial support following the financial crisis
• In what way could automatic fiscal transfers be beneficial during a financial crisis?

  They can provide immediate financial assistance to struggling economies
• What connection can be drawn between the lack of automatic fiscal transfers and the financial crisis in the EU?

  The lack of automatic fiscal transfers may exacerbate economic difficulties during a financial crisis