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Introduction:

The financial crisis has developed into a debt crisis in most South European 
countries. It has had the most severe impact in Greece, but Spain, Portugal and Italy 
have all been hit by the crisis in different levels. All western and highly 
industrialized countries have been exposed to the economic crisis. Europe is still 
suffering from the crisis, but southern Europe has shown to be, by far, the most 
vulnerable region. This task is about why especially southern Europe has taken this 
position, and what to do to get out of it. 
 
All the southern European countries are members of the Euro-zone, a number of 
European countries sharing the same current, the Euro. The question here to 
investigate is why only a part of the Euro-zone has been hit hard by the debt crisis 
while the rest, with Germany in the lead, seems to get along in a better way. 
Germany has even had apositive growth rate in the GDP, though small. Germany 
has been the big loaner to the southern European countries together with IMF and 
other international investors. The conditions for these loans have been severe cuts in 
the public sector, social, health and education expenses, privatization programs and a 
subsequent huge unemployment and negative economic growth. The same kind of 
conditions exposed to the Third World for many years called structural adjustment 
programs 
 
The question here to investigate is, if these massive economic cuts, political changes 
and subsequent social turbulence and problems were necessary and the only way to 
solve the crisis. The ones who will pay for this policy, the victims, are the 
populations in the different southern European countries, though you cannot say they 
are the ones who have caused the economic problems. A discussion has been if cut 
downs or investments were the right answer to a crisis like this. Europe has chosen 
the path of cut downs while USA and Japan make use of investing in a bigger scale. 
The debt in the two latter countries has the same size as the debt in the southern 
European countries.The economic growth in USA is bigger than in most European 
countries. 
 
The European countries seem to have had a choice in how to get out of the crisis. 
The question here to investigate is why Europe, mainly the Euro-zone, has chosen to 
let the people in general pay for this massive crisis, though unemployment, social 
degradation for many, cut down in welfare in general, and seemingly lack of 
investing for the future. A development that has created thousands of human 
tragedies, but can also be the reason for more general social unrest, maybe rebellions 
In Spain the crisis is mainly due to speculations in a housing bobble by the financial 
institutions, the government is forced to support the financial institutions and borrow 
money.In Greece also the government has to some extent been manipulating the 
economy, also to be a member of the Euro-zone, causing a lack of money for both 
the government and the financial institutions. In all the countries it has been a 
conglomerate of politicians and the financial market, which have been in the lead of 
creating this debt crisis, though they would claim it was not possible to foresee it the 
crisis approaching. The question here to investigate is how it has been possible, or 
will be possible, for this class of politicians and financial agents to escape their 
social, economic responsibility and let the people pay the bill. And will the people 
accept this?

Directive:

The aim and the product of the task are related both to the title, the introduction and 
the directives. 
 
Read the introduction and the related issues and make clear the overall aim. 
Relevant files are added. Use additional sources if you find it beneficial. The origin 
of additional sources must be noted for control. 
 
Related issues to include in the product: 
1. Illustrate with figures and explanations the current situation for the Southern 
European societies and their people 
 
2. Give some reasons upon why exactly Southern Europe is hit that hard by the 
crisis. Go briefly through the different countries. An example could the 
relations between the political elite and the financial sector 
 
3. Why does the Northern Europe not suffer from the crisis as much as Southern 
Europe. Consider and give some reasons 
 
4. Go through the main arguments for continuing the policies of austerity in 
Southern Europe and the arguments for stimulating growth instead &ndash; or both 
 
5. Investigate and consider the conditions for people in general in Southern 
Europe because of the crisis, how they suffer, act and manage 
 
6. How do the rest of Europe, EU, look upon the Southern European crisis, and 
what do the rest of Europe do to ease of to solve the situation 
 
7. Consider if there alternatives to the present way of handling the debt crisis in 
Southern Europe and if &ndash; why are they not followed 
 
8. Make a speech for the Core Group and the tutor about the issues above and 
give your version of what to do with the situation in Southern Europe and the 
people there

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