Ad Here  
Curbing steel imports will hurt small business... People Flow Day- Safety Durga - India’s largest blast furnace; now operational Brand leaders come forward... European crisis is a global crisis! Scoot offers just Rs.13,500 to ANZ... TVS Logistics – another acquisition to sharpen the business model Automotive Vision Plan II... ECGC expands operations Time to fast-pace the logistics sector Economic issues take a back seat at G20 summit Auto test tracks launched at GARC Oragadam campus Placing the right shoe forward... The new look- 4s Verna Hero Motocorp - smooth ride Research needs more funding Waste, a gold mine Murugappa- a year of consolidation Make way for the new and dynamic railways TII’s single largest investment at Thiruthani Holiday Inn opens in OMR Chennai Big-ticket investments march towards Punjab Creating Tamil Nadu Banana brand CUB: towards card-less withdrawal Dynamic e-commerce scenario Backpack laboratory ISRO's 100th mission Industry-well poised to invest on expansion Three more leather clusters… Smart controls for cooling large multi-zone spaces ... On the ‘milky’ way Steel loses its sheen Chennai to get a roundabout Metro Veritas Finance- financing the unfinanced Celebrating 180 years of relevance More gensets and diesel engines from TAFE Adding Zest to Scooty Tata Steel commence operations at Kalinganagar Focus on self-certification and third party inspection Climate change may change the way businesses work... Celebration time at MS Chola Apple maps – finding its way Realising double digit growth in Tamil Nadu Changing dynamics in human resource management SumInfra- corridor based development... Inclusive and forward moving... Bridging the skill deficit in pharma industry - ALL to launch electric busses AirAsia India infuses funds to fight out competition Well-refined – RIL’s refinery margins zoom World labour laws at a glance Investor friendly Japan Economic, business and social sustainability TII-challenging year with flat growth Chola MS launches motor app TOP 10 CEO Compensation Housing Innovation Challenge, 2015 IFCI to raise NCDs upto Rs 2000 crore Purdue and IIT-M sign the dotted line Pharma market dozes Applauding enterprise... STFC raises money WABCO’s second Chennai plant TN budget pragmatic and moderate on fiscal deficit Four daughters and a proud father OBO Bettermann for better lightning protection Business Breif Techies trip to India Towards peace of mind Carrefour’s quick exit TiE applauds innovative entrepreneurs Indigo stays leader with 40 per cent share Downsizing spree... Innovation that helped Chennai port When Centre visits the state Gem of social service... Need to focus on ease of doing business... Sun Edison launches solar pumps Hyundai excites again TCS’ revenues cross Rs 100,000 crore Rating of states to be released soon Nigeria comes nearer Connecting the unconnected Indian Bank – global businesses crosses Rs 3 lakh crore... Chennai will soon get its World Trade Centre LVB gears to become a financial supermarket Chola MS net crosses 100 crores Business Briefs Strategy war escalates between Hero and Honda BRICS development bank An aerospace-defence cluster in Tamil Nadu… A global plastic event in India Striking cords for 25 years… Realty sector takes a break... Is Indian telecom industry heading for a monopoly? Flexible labour laws… Secured NCDs from Shriram City Airlines wage price war Reality bytes Ridley marathon to India Chennai Port is at last decongested! Digital retail transactions stabilise at higher level… An American alliance in the chemical industry? Blue Star plans a new plant in south ALL – truck industry is recovering from degrowth Schwing Stetter India joins hands with US-based Gomaco Nothing to hide... ALL-two launches in a row Illicit markets a concern to growing economy
European crisis is a global crisis!

“When Argentina and Chile underwent crisis, it was termed as Latin American crisis. When Thailand and its neighbouring countries underwent the same, it was termed as Asian crisis. But when countries like Spain, Portugal and Greece undergo crisis, it is called as global financial crisis. The Europeans have the knack of calling their own crisis as a global one,” said Dr R Vaidyanathan, Professor of Finance and Control, IIM-Bengaluru.

Addressing a Hindustan Chamber of Commerce’s Economic Lecture series, Vaidyanathan stated that European countries are terming their conflicts as a global one for the past 50 years. Huge amount of debts procured by all these countries were cited as the major reason for the meltdown. Overall debt percentage to GDP in Spain, France and Italy is over 300 per cent, while  Britain’s is approximately 500 per cent. Crisis occurs when borrowing goes beyond a point. In all these countries, people are not worried about savings, but about consumption. Household debt percentage in all these countries is in the range of 80-100 per cent. In contrast, Brazil, India and Russia have the lowest household debt percentage of 0-20 per cent.

Vaidyanathan said: “50 per cent of youngsters in Spain are jobless, mainly due to lack of skillset, followed by Greece with 48 per cent, Portugal and Italy with 30 per cent and Britain with 22.3 per cent.”

On India, Vaidyanathan said that growth of Indian GDP is majorly driven by unorganised businesses. The presence of so many unorganised businesses will probably be integrated through the launch of MUDRA Bank announced in the recent budget.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236