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