1. PIGS CRISIS Augustin Radot Drai Nathan Xin Hu Thomas Réyal Sahadou AbdoulKader

2. Measures taken By the ECB, EC, FMI to tackle the crisis
More determination needed to build a longer-term future for the euro
July 2011 European Council, the meeting to end the crisis with a mixture of lower interest rates and some private sector rescheduling and restructuring
Stronger economies are pushing for stringent spending control guidelines, where a country’s spending will be directly proportional to its economic strength
future for the euro (Euro-zone governments need to pave the way for a tighter monetary union)

3. Measures taken By the ECB, EC, FMI to tackle the crisis
Restructuring Debt, with strict austerity measures placed on countries at risk of default
Troubled Eurozone countries are pledging to cut back government spending to show they can be trusted
In May 2010, European governments and the IMF have stunned global stock markets with a 750bn-euro

4. CREATION OF EFSF AND ESM MECHANISMS
The European Financial Stability Facility (EFSF) was created as a temporary crisis resolution mechanism by the euro area Member States in June 2010
The EFSF is authorized to issue bonds or other debt instruments on the market to raise the funds.
It has a lending capacity of €440 billion, its scope of activity is:
It can provide loans, recapitalize financial institutions and purchase bonds of an EFSF Member State in primary and secondary debt markets.
EFSF bonds are eligible for ECB repo facilities,
EFSF had a highest possible short-term rating
Since July 2013 The EFSF is replaced by The ESM

5. ESM MECHANISM
The European Stability Mechanism (ESM) was created to provide financial assistance to euro area countries in financial difficulty
The ESM fuctionned as permanent firewall
The ESM has a maximum lending capacity of €500 billion
If Euro area member state need financing or recapitalization to its financial sector, it can apply for ESM financing
Financing is under condition to sign a Memorandum of efforts to be implemented in order to restore the financial stability
With the ESM the euro area has equipped itself with a state of the art and permanent crisis resolution scheme

6. ECB response to the crisis
Through these exceptional circumstances, the ECB took exceptional monetary policy measures:
• Standard measures: The ECB adjust its key interest rates downwards, then overall financing conditions are very favourable in the euro area as a whole
• Non-standard measures:
Fixed rate full allotment (LTRO): on 12/21/ bn borrowed by banks, to serve in part to buy government debt
Extension of maturity of refinancing operations
Expansion of collateral pool / bank issued covered bonds
Securities Market Program launched in May 2010 : ECB cumulated 210 Bn of sovereign bond

7. ECB response to the crisis
Outright Monetary Transactions announced by ECB in September 2012: respect to fiscal prudence and structural reforms by signed country
The OMT programme announcement contributed to improve financial market conditions,
to reduce substantially sovereign spreads and
restored confidence in the euro area and investors beliefs of the euro reversibility.
The ECB will buy unlimited government bonds with maturities between one and three years: Spain conducted 76% of its debt issues with maturities under five years

8. CONCLUSION Greece’s Debt Crisis has put the EU under the scope
Hence the Big Brothers should help the countries in problem to come out from the crisis.
It’s considered as probably the biggest test the EU and the EMU in particular has gone through