Imbalances and Debt Crisis in the Euro Area
Imbalances and Debt Crisis in the Euro Area

Summary/Abstract: The main goal of the article is to analyse some critical macro and microeconomic indicators between 1995 and 2012 in EU member states, but in particular, in the Euro Area. By using quantitative and comparative analysis, the paper found that there is a trend of both internal and external imbalances within the single currency area. Both regression and correlation analysis indicated statistically significant relations between the key macro and microeconomic indicators, such as the current account, market share, net international investment position, fiscal deficit and public debt, including imbalances in the TARGET2 system. Based on this, the paper came to the conclusion that put the economies on a sustainable, solid and balanced economic growth path in the eurozone countries, comprehensive structural reform agenda is needed, adopting and imple-menting the medium-term fiscal consolidation plans a the creation of banking union would be critical.

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